Property Tax Exemption for Wind Generators

Summary

In May 2015, Oklahoma enacted a bill (SB 498) ending the property tax exemption for wind power generators. The exemption will end on January 1, 2017; projects currently in production or put into production by December 31, 2016, will still receive the exemption for the full 5 year period.

Oklahoma offers a 5-year ad valorem property tax exemption for certain wind power generators.

Manufacturing facilities (broadly defined as “facilities engaged in the mechanical or chemical transformation of materials or substances into new products”) are eligible for the property tax exemption if there is a net increase in annualized payroll of at least $250,000 in counties with a population of 75,000 or less or at least $1,000,000 if the facility is located in a county with a population of 75,000 or more. However, wind-power generators are specifically exempt in the statute from these payroll requirements if there is a net increase in annualized payroll at the facility of at least $250,000 or a net increase of $2,000,000 or more in capital improvements while maintaining or increasing payroll.

More information on the wind-power generator ad valorem property tax exemption can be found through the Oklahoma Tax Commission.