Wind Energy Production Tax
Wind Energy Production Tax is the tax on the energy produced by means of a wind energy conversion system.
A wind energy conversion system (WECS) is any device that converts wind energy to a usable form of energy.
The Wind Energy Production Tax rate varies, based on the combined nameplate capacity of the WECS being taxed. This table shows the tax rates in megawatt (MW) hour.
|Type of WECS||Nameplate Capacity||Tax Per MW Hour|
|Large Scale||Over 12||$1.20|
|Medium Scale||Between 2 and 12||$0.36|
|Small Scale||2 and under||$0.12|
The Wind Energy Production Tax applies to WECS installed after January 2, 1999, unless the system is exempt from the tax. These WECS are exempt from the Energy Production Tax:
- WECS with a nameplate capacity of 0.25 megawatts or less
- WECS owned by a municipality and with a nameplate capacity of 2 MW or less