Renewable Energy Sales Tax Exemption in Jeopardy

Renewable energy equipment was to be exempted from sales tax in Wisconsin beginning next month - but due to budget cutting proposals the exemption is slated for a two-year delay - unless Governor Doyle vetos the proposal.

Below is the text of a letter hand-delivered to Governor Doyle's office today by RENEW Wisconsin to encourage him to veto the delay. You can help too by going to the Governor's website http://www.wisgov.state.wi.us/contact.asp?locid=19 and asking him to support renewable energy in Wisconsin by vetoing the delay proposal. (I am also including the email I sent him just a few minutes ago.

June 26, 2009

Governor James E. Doyle

115 East, State Capitol
P.O. Box 7863
Madison, Wisconsin 53707

Dear Governor Doyle:

RENEW Wisconsin and its members across the state respectfully request a veto of the budget bill provision that would delay the effective date of the sales and use tax exemption for equipment powered by or used in the generation of wind and solar energy and manure digesters from July 1, 2009, until July 1, 2011.

Though the sales tax exemption might seem of little economic importance to a planned installation, the amount could significantly change a project’s economic feasibility, depending on installation size. For instance, the sales tax on a 50 kilowatt wind turbine that costs $250,000 would come to at least $12,500. That would add several years to the project’s payback.

This year Wisconsin businesses and homeowners have planned and bid on renewable energy systems based on system costs that include the sales tax exemption. Some would-be system owners have delayed their installation in anticipation of the sales tax exemption. Repealing this exemption on such short notice will result in project cancellations and delays.

Customer-owned wind and solar systems will contribute toward the renewable energy needed to achieve a 25% target by 2025. Please keep us moving toward the target by vetoing the delayed effective date for the sales tax exemption.

Thank you for your consideration.

Respectfully,

Michael Vickerman

Executive Director

RENEW Wisconsin

Dear Governor Doyle,

I am writing to respectfully request that you support renewable energy by vetoing the proposed delay in sales tax exemption for renewable energy systems in Wisconsin.

Our energy future is uncertain. I know you have to juggle many things as you make the decisions that sculpt our future. But please consider this: At present almost our entire infrastructure - from the way we get around to the heat for our homes to the very food on our table - is heavily dependent on fossil fuel.

What will happen when the oil stops flowing?

And when will that be?

Nobody knows.

But I do know this - no one will suffer if we've prepared for the worst way earlier than we need to.

But if that day comes before we think it will - and it very well might - then I hate to imagine the consequences.

Privately owned renewable energy systems can make a significant contribution towards a safer future for the citizens of Wisconsin. But it's a big commitment. Every incentive helps bring more clean energy systems online.

At the Renewable Energy Fair last weekend in Custer I had the privilege of speaking to a great number of people. Invariably those from outside Wisconsin remarked about how progressive and forward-thinking our state is in terms of its support for renewables.

Mr. Doyle, please uphold Wisconsin's tradition of forward-thinking renewable energy policy and veto the delayed effective date for sales tax exemption on renewable energy.

Thank you,

Anne Michelsen