David Burton and Richard Page Author Article for North American Windpower on Colorado’s Tax Credit Policy
North American Windpower has published the article “What Colorado’s Tax Policy Change Could Mean For Wind Power,” written by David Burton and Richard Page, partner and associate, respectively, in the tax practice at Akin Gump.
The article examines Colorado’s recent amendment to its energy tax credit statute, providing for “a refundable election for tax credits earned by investing in renewable energy in enterprise zones.” An enterprise zone, the authors note, is an area that has been designated as such because of its “relatively high unemployment rate, low per-capital income, or slow population growth.”
Burton and Page write that developers considering Colorado versus another state without a tax credit are likely to select the Colorado project. Still, they add that Colorado’s 3 percent of “qualified investment” tax credit pales in comparison to North Carolina’s 35 percent tax credit for solar, even taking into account the fact that North Carolina’s credit is non-refundable. They add, however, that “given climate and topography, it seems unlikely that Colorado is looking to compete with North Carolina for solar projects or North Carolina is looking to compete with Colorado for wind projects.”