The tax bill targeting Oklahoma’s renewable energy industry has yet to make it to the floor of the State House a week after Speaker Charles McCall proposed the measure in response to a lack of movement on the Right of First Refusal power for utilities.
The House Impact study on fiscal impact of the measure did not include any mention of how much revenue such a tax would raise.
HB2950, as proposed by Speaker McCall, would create a levy of one dollar per megawatt-hour of electricity produced by wind, solar, geothermal, biomass and hydroelectric power facilities in the state. It came to light following lengthy efforts to reach a compromise between those who want utilities to have the power to construct major transmission lines without competitive bidding.
The tax on renewables was part of a bill designed to also lower income taxes for Oklahomans. Under the Speaker’s bill, there would be a 0.25% personal income tax cut for all brackets, lowering the top marginal rate from 4.75% to 4.50% effective tax year 2024.
However, since there was no movement by the Speaker to call for a vote this week, observers described it as a “live round” in his “hip pocket,” meaning he could still proceed despite a deadline for committee bills to be moved.
Normally, bills receive a fiscal impact statement performed by House staffers. The research analysis as obtained by OK Energy Today showed only a fiscal impact on the proposed personal income tax cut and did not include any impact on McCall’s tax on renewable energy.