A wind energy conversion system (WECS) is any device that converts wind energy to a usable form of energy.
The Wind Energy Production Tax rate varies, based on the combined nameplate capacity of the WECS being taxed. The table below shows the tax rates in megawatt (MW) hour.
| Type of WECS |
Nameplate Capacity
(MW) |
Tax per Megawatt Hour |
|---|
| Large Scale |
Over 12 |
$1.20 |
| Medium Scale |
Between 2 and 12 |
$0.36 |
| Small Scale |
2 and under |
$0.12 |
The Wind Energy Production Tax applies to WECS installed after January 1, 1991, unless the system is exempt from tax or the system.
The following WECS are exempt from the Energy Production Tax.
Wind Energy Production Report
You must file a Wind Energy Production report if you have a WECS that converts wind energy to usable form of energy.
Filing
You must file the Wind Energy Production report online through our e-Services system. Details on filing are found in the Wind Energy Production Report Instructions.
You will need to register for an Energy Production Account before you can file. Register by calling Business Registration at 651-282-5225.
Deadline
The Wind Energy Production Tax report is due annually on January 15.
An extension of up to 15 days may be granted if a written request showing good cause is submitted. For more information, visit the extension request instructions.
If you do not file on time, we will determine your tax by applying a production rate of 60% to the combined nameplate capacity of your system.
Determining Your Tax
The department will determine the tax due and notify you and the counties where the systems are located by February 28.
The nameplate capacities of wind energy conversion systems under common ownership will be combined if the systems:
- are located within 5 miles of each other; and
- were constructed in the same 12 month period.
Common ownership exists when the same, or similar, persons or entities own two or more systems, even if the ownership shares are different for each system. Common ownership does not exist solely because the same person or entity provided equity financing.
In the case of a disagreement with the department of revenue on the combined nameplate capacity of your system, the department of commerce shall determine the total size of the system.
Paying the Tax
The counties where the systems are located will send you the tax bills. You must pay the tax to the appropriate county treasurers by May 15.
