Tax Revenue from Wind, Solar Projects Assists Local Entities

From direct payments to landowners who host sites to employment opportunities during construction and operation of the systems, wind and solar development bring numerous economic benefits to rural Minnesota counties and communities. 

Additionally, solar and wind systems can provide new tax revenue streams. Two fact sheets recently released by the Center for Rural Affairs provide a breakdown of the taxes typically paid by developers and operators of wind and solar energy projects and show how they are benefiting counties and communities in Minnesota. 

“That revenue helps pay for local emergency services and community and infrastructure improvements and this has an outsized impact on rural counties where the populations are smaller,” said Molly Malone, senior policy associate for the Center for Rural Affairs. 

Tax revenue from wind generation in Minnesota is derived from the state’s wind energy production tax. According to the U.S. Energy Information Administration, wind energy generated 22% of electricity in the state during 2020. The production tax rate will vary by the capacity, with some smaller systems exempt.