Terrill to Refile Alternative Energy Legislation

The chairman of the powerful House Revenue and Taxation Subcommittee plans to refile legislation to spur the growth of alternative energy in Oklahoma.

State Rep. Randy Terrill announced today that he will refile legislation to create new tax incentives for those using wind, solar or geothermal energy.

"The energy crisis is serious and getting worse and we need to do something sooner rather than later," said Terrill, R-Moore. "My legislation will address the crucial need to develop new sources of energy that lessen our dependence on expensive, foreign oil."

Terrill noted there are at least three major components necessary to address the nation's energy crisis - expanding domestic production of oil and gas, expanding refining capacity, and developing alternative energy sources.

State lawmakers have already addressed the first two components by approving tax incentives for domestic drilling with more expected to be renewed next year and by simplifying the permit process for new refinery construction in Oklahoma.

Terrill said it's now time to address alternative energy.

"In Oklahoma, we have done a good job of encouraging new oil-and-gas exploration," Terrill said. "It's time to give support to alternative energy technologies that will generate energy in the quantity that we require."

Terrill's legislation will offer Oklahoma consumers tax credits for installing solar, wind or geo-thermal energy equipment.

The bill will create a non-transferable tax credit equal to 40 percent of the total cost of installation for solar and wind energy systems.

The 40-percent credit can be carried forward for up to 10 years after installation.

The proposal will also provide tax incentives for installing geo-thermal energy equipment. Consumers who install a geo-thermal heating and cooling unit would be eligible to receive a non-transferable tax credit equal to 10 percent of the total cost of installation.

Terrill said the initial cost of installation and equipment for energy alternatives keeps many Oklahomans from taking that step.

However, he said the cost savings on electric and gas bills plus the tax credits available through his bill would more than offset the upfront expenses.

Terrill has filed similar legislation in previous years.

However, thanks to skyrocketing fuel prices, he predicted the legislation will fare better this year.

"My legislation will give homeowners, farmers and businesses a helping hand by providing an alternative to high gas bills and begin to reduce our dependence on foreign energy sources," Terrill said.