Local governments benefit from wind farm tax
Wind energy is an energy transition, but also a steady source of income for municipal budgets. The property tax paid by investors is key, amounting to millions of zlotys per year in some local governments.
So how does the tax mechanism for wind farms work?
The main source of revenue for municipalities is property tax, paid by investors on the construction of turbines and accompanying infrastructure, including transformer stations, easements for power cables, and service roads.This is a regular and predictable source of income, independent of subsidy programs or one-off transfers.
The Świętokrzyskie Province is a good example of the relationship between wind energy and local finances. The region is developing its wind sector cautiously and steadily, without rapid increases in capacity or an oversupply of projects. Despite this, the operating installations generate steady property tax revenues for the municipalities.
More information is available in the publication, which we invite you to read.
“Fromthe perspective of local governments, both the amounts themselves and their predictability are crucial. Property tax related to wind farms is one of the few sources of income that municipalities can plan for years in advance and directly link to local investments.”