BETC reform bill advances
From our weekly issue dated February 10, 2010
Oregon“s Business Energy Tax Credit (BETC) program has come under fire for unanticipated cost overruns, but the Legislature acted last week to fix some of those problems.
On Friday, Feb. 5, the House Revenue Committee passed House Bill 3680 on a 10-0 vote. That bill is intended to modify the BETC program by setting a cap on its costs and limiting credits for large scale wind facilities.
According to a Feb. 5 press release from Gov. Kulongoski, HB 3680 also establishes performance standards for all projects receiving tax credits under BETC and eliminates the practice of multiple applications for one project. Kulongoski said that the reforms will save the state general fund $55 million for the 2009-11 biennium and $98 million for the 2011-13 biennium.
“The BETC has helped create thousands of jobs and leverage hundreds of millions of dollars in private investment across the state “ but every tax credit has a shelf life and should be routinely reviewed to ensure it is still necessary to achieve its primary objective,“ Kulongoski said. “This bill is a solid framework that creates certainty for taxpayers and industry.
“And it continues to be a strong economic development tool for communities across Oregon, creating jobs and advancing clean, renewable energy.“
It was anticipated that HB 3680 would move to the House floor for a vote some time this week.
Reform of the BETC program comes as the Monday, Feb. 8 state economic forecast showed a revenue decline of $183 million. A Monday, Feb. 8 press release from the office of House Speaker Dave Hunt (D-Clackamas) said that the reforms, combined with the state“s $79 million ending fund balance, will “absorb much of those expected decreases.“
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