Nebraska Natural Resources committee opens interim study of nameplate capacity tax; developers, counties call for new analysis

Senator Tom Brandt, chair of the Nebraska Legislature Natural Resources Committee, opened an interim study hearing on LR159 to review the state's nameplate capacity tax, the fixed excise charged per megawatt on utility-scale wind and solar. Testimony came from industry developers, county officials and utility representatives weighing competitiveness, local revenues and whether the 2010 formula remains appropriate.

The committee is examining whether the $3,518-per-megawatt rate set in 2010 still reflects current capital costs and county needs. "The nameplate capacity tax is a fixed excise tax and it's been fixed at that number for 16 years now," said David Levy, an attorney representing utility-scale project developers, who said a modern calculation could produce a different rate and recommended study by economists. "If we were to double the nameplate capacity tax, we would not be competitive. Full stop."

Why it matters: The nameplate capacity tax replaces a prior personal-property property tax regime for turbines and similar equipment and is distributed to local taxing entities in the…