Lawmakers draft tax breaks

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Coal and electrical utility lobbyists helped an interim legislative committee draft legislation Wednesday that would provide a tax break for installation of pollution control equipment on refineries and power plants.

The two energy tax break proposals before the Minerals, Business and Economic Development Interim Committee are billed as "incentives for new projects/new technologies" and "continuity of existing industrial facilities."

Both would eliminate the sales and use taxes for only the purchase of pollution control equipment, then sunset in 2015.

The electric utility industry must meet new federal air quality regulations, regardless of whether Wyoming provides a tax break. None relate to carbon dioxide emissions, which contribute to global warming.

Committee co-chairman Rep. Thomas Lockhart, R-Casper, said he supports the tax breaks because he believes it will help Wyoming retain jobs at existing power plants as well as encourage the development of new power plants, additional jobs and help grow a long-term revenue base.

Lockhart said several oil refineries in Wyoming shut down in part due to regulations that would have forced them to add expensive pollution control equipment.

"My belief is it's important to keep good businesses here, and if an old power plant can't meet the standard, then they close and the jobs are gone," Lockhart said in an interview before Wednesday's committee meeting in Casper.

Wyoming already provides a property tax break for industrial pollution control equipment. Some city and county officials note that the tax breaks would diminish the flow of sales tax revenue used to assist communities that deal with the immediate impacts of large industrial construction.

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