The Daily Caller

The Daily Caller
              FILE - In this Oct. 12, 2012 file photo wind turbines produce green energy in Nauen near Berlin, Germany. Stephan Kohler, who heads the government-affiliated agency overseeing Germany

Study: Wind subsidies cost non-wind states hundreds of millions

As the deadline for Congress to extend federal tax credits for wind energy production fast approaches, a new study finds the subsidies amount to wealth transfers from taxpayers in non-wind states to the tune of hundreds of millions of dollars.

“According to our calculations, taxpayers in 30 states and the District of Columbia paid more to the federal government in 2012 to support wind subsidies than wind producers in those states received,” according to the free-market Institute for Energy Research

“Of those 30 net losing states, 11 states and the District of Columbia had no wind production and received zero subsidies but still paid their share of the tax burden related to federal wind subsidies,” said IER , which opposes extending tax subsidies for wind energy.

The contentious Wind Production Tax Credit has also moved millions of dollars from states with struggling economies to states with booming economies.

For example, California suffered a net loss of more than $195 million from wind tax credits over the last ten years. The state currently has a high unemployment rate of 8.7 percent, according to the Bureau of Labor Statistics.

New York has seen a net loss of more than $162 million tax dollars from wind subsidies in the last decade and the state’s unemployment rate continues to remain relatively high at 7.7 percent. Florida, New Jersey and Ohio have lost more than $366 million combined in the last decade. All three of those states currently have unemployment rates of 6.7 percent and above.

States that were the largest beneficiaries of wind tax credits saw a net flow of hundreds of millions of dollars into their states to build wind farms. Texas has seen a net gain of more than $394 million in the last 10 years. The state if often cited for its high economic growth and its relatively low jobless rate of 6.2 percent.

North Dakota saw a net gain of more than $110 million and currently has the lowest unemployment rate in the country at 2.7 percent. Iowa and Oklahoma saw more than $415 million combined flow into their states thanks to generous wind subsidies.

The Wind Production Tax Credit was first enacted in 1992 and has since been extended seven times. At the end of this month, tax benefits to wind will blow away unless Congress opts to extend them again.