November 27, 2006

Nova Scotia bill sets out taxation system for wind power facilities

HALIFAX, NS-Legislation setting the tax level for wind turbines in Nova Scotia was recently introduced by Jamie Muir, Minister of Service Nova Scotia and Municipal Relations. The new Wind Turbine Facilities Municipal Taxation Act is an important step in promoting the growth of renewable energy in Nova Scotia, said Muir. The act provides for a hybrid tax system combining the standard "rate times assessment" for land and building with an additional payment of $5,500 per megawatt (MW) based on the total capacity of the turbine or turbines at a facility that is commercially producing electricity for sale on the grid. Facilities already in production, or those that already have signed a Power Purchase Agreement with Nova Scotia Power and are in the planning and construction phase will pay a tax rate of $4,500/MW. The province through the Department of Energy, will provide for a payment to the affected municipal units of $1,000/MW. This payment will continue for the life of the existing contracts up to a maximum of 20 years. The legislation also establishes a level playing field for the industry by setting the hybrid as the base for all future taxation of windmills including any built by Nova Scotia Power.

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