Tax breaks created for green projects in Ohio

Ohio House and Senate agree on new tax policy for power projects.

COLUMBUS — Negotiators for the Ohio House and Senate on Thursday, June 3, appeared to reach agreement on tax breaks aimed at bringing “green energy” projects to Ohio as the legislature worked to finish up and recess for the summer.

Also, the House approved a bill to overhaul how telephone companies are regulated and the Senate was expected to concur with the House version.

The Ohio Telecommunications Association and Communications Workers of America supported the bill but consumer groups said it would wipe out consumer protections and bring higher monthly bills.

Landline customers with bundled services will no longer have protections, such as an automatic month of credit if their phone is out for more than 72 hours or the guarantee that their service will be reconnected within 24 hours of paying a bill, said Marty Berkowitz, spokesman for the Ohio Consumers’ Counsel.

The bill also allows phone companies to hike basic service fees by up to $15 a year, he said.

Behind the scenes, Sen. Jon Husted, R-Kettering, worked to find votes for a constitutional amendment to replace Ohio’s system for drawing new state legislative districts with a plan geared to creating fairer and more politically competitive districts.

In other action, the Democratic-controlled House approved legislation aimed at highlighting the wealth of GOP gubernatorial candidate John Kasich, legislation that is expected to die in the GOP-controlled Senate.

The “green energy” tax breaks represented a rare bipartisan cooperation as partisan bickering heated up with the approach of the November elections.

Democratic Gov. Ted Strickland was poised to sign the legislation, said Amanda Wurst, Strickland’s spokeswoman.

The House Ways and Means Committee voted 12-5 on a modified version of Senate Bill 232, sponsored by Sen. Chris Widener, R-Springfield, and already approved by the Senate. The House and Senate were expected to approve the new bill later Thursday.

Widener said it could create up to 1,000 jobs.

One proposed wind farm is in Champaign County.

Under the legislation, projects that qualify would pay annual fees based on how much energy they generate instead of property taxes, both real and tangible.

Revenue from the taxes goes to school districts and local governments and a coalition representing these groups objected to the bill.

A statement from the coalition, which includes the Ohio School Boards Association and the Ohio Township Association, said it “falls woefully short in replacing losses in local tax revenues for schools and local governments.”

Widener has said the new system is necessary for Ohio to catch up with other states in attracting renewable energy projects that generate electricity from sources such as wind and solar power.

Ohio’s current effective tax rate is up to eight times higher than neighboring states, the Ohio Wind Energy Association has said. Also, the legislation will help the state comply with the energy bill passed in 2008 that requires 12.5 percent of Ohio’s electric energy to be generated by renewable sources 2025, Widener has said.

County approval would be required for companies to receive the tax breaks and counties could increase the per megawatt fee to $9,000. Otherwise, the top fee would be $8,000, depending on the project.

By William Hershey and Laura A. Bischoff

Dayton Daily News

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