In the past few years, companies have been milking the state’s green energy program, which offers millions of taxpayer dollars for various conservation and renewable energy projects, The Oregonian reports. State revenue officials expect that between 2007 and 2017, Oregon will have spent a whopping $1 billion in tax dollars for these incentives. And while state spending on the tax credits has skyrocketed, money for schools and health care is getting harder to find, which puts lawmakers in a bind: Should they cut the green energy program, a key economic tool that supposedly lures green jobs to the state?
The Oregonian reporters Ted Sickinger and Harry Esteve have built upon previous reporting to publish this third article in their series "The Cost of Green," which investigates the value of Oregon's green energy initiatives.
Esteve reports that supporters say the Business Energy Tax Credit positions Oregon as renewable energy hotspot for renewable power start-ups. But is it a good investment if any company can get tax break for a green energy project, regardless of how much energy it saves or produces?
Some examples of tax breaks from Oregon Department of Energy records (as reported by The Oregonian) include $10 million in tax dollars for bus passes for many businesses, and a dentist who was pre-certified for $10 million in tax credits to build a solar panel array in the eastern part of the state (the tax benefit will not be finalized until the project is completed).
It’s worth noting that the program has fans on both sides of the aisle: Democrats get to promote green energy; Republicans appreciate tax benefits for businesses. But the latest estimates show the subsidies will cost Oregon's general fund nearly $300 million over the next two years -- a 60 percent increase over current spending and quadruple the state’s figures from just four years ago, according to a recently released state report, Esteve reports.
But even if lawmakers pulled the plug now, Esteve notes, the money would still flow. Credits are spread out over five years after completion, and these projects take time. So if the subsidies were discontinued, the Legislative Revenue Office estimates that they would still cost the state more than $100 million a year at least until 2017.
