Session Watch: BETC Changes Move To House Floor
The House is expected to vote this week on changes to Oregon’s Business Tax Credit. Better known as BETC (pronounced Betsy), the tax credits have played a huge role in boosting renewable energy in the state.
BETC has turned out to be so popular, that legislators are now worried the credits have become too expensive. Late Friday, the House Revenue Committee approved HB 3680, an updated version that’s designed to control costs and close some loopholes. And unlike a 2009 attempt that was vetoed by Governor Kulongoski, this time he’s okay with the changes.
Here’s how HB 3680 will bring BETC under control.
- Large scale wind projects are being slowly phased out. This year, projects larger than 10 megawatts are limited to a $3.5 million dollar maximum tax break. The cap is lowered to $2.5 million in 2011 and then to $1.5 million in 2012.
- It limits all BETC credits to $300 million for the 2009-2011 budget cycle.
- It closes loopholes that allowed some renewable energy developers to game the system. In some cases, businesses had figured out they could get bigger tax credits if they submitted several small proposals instead of one large one.
Figures released by the Governor’s office says HB 3680 will save the state about $55 million during the current budget cycle and about $97 million in 2011-2013.
BETC is also credited with creating 1,800 renewable energy jobs since 2006. That number is expected to double in the next two years.
