Renewable Energy Sales Tax Exemption

Summary

Note: As of June 30, 2012 the Renewable Energy Sales Tax Exemption is no longer available. This summary is available for reference purposes only.

In 2003, the Wyoming legislature added sales of equipment used to generate electricity from renewable resources to the list of types of sales, purchases and leases which are exempt from the state excise tax. The exemption is limited to the acquisition of equipment used in a project to make it operational up to the point of interconnection with an existing transmission grid. Equipment eligible for the exemption includes wind turbines, solar panels and other generating equipment, control and monitoring systems, power lines, substation equipment, lighting, fencing, pipes and other equipment for locating power lines and poles. Equipment not eligible for the exemption includes tools and other equipment used in construction of a new facility, contracted services required for construction and routine maintenance activities and equipment utilized or acquired after the project is operational.

HB 215 of 2009 amended this exemption by establishing two separate expiration dates. For eligible renewable energy equipment with a net rating capacity of 25 kilowatts (kW) or less, and systems used entirely off-grid, the expiration date remains June 30, 2012, as established by HB 319 of 2007. However, for equipment with a rated capacity greater than 25 kW, the expiration date is December 31, 2011. These larger projects will only qualify if either the project developer is the land owner, or if the project developer has, prior to January 1, 2010, entered into a written contract with a landowner. Project developers seeking this exemption also must meet other requirements for permitting and documentation as specified in HB 215.

Wyoming interprets its sales tax exemption statutes narrowly. If there are questions as to whether equipment qualifies for an exemption, written inquiries for determinations are encouraged.