County reaches bonus depreciation agreement with wind turbine company
June 01, 2012
The Howard County, Indiana, Board of Commissioners recently signed an economic development agreement that will bring wind turbines to the area, the Kokomo Perspective reports.
The wind turbine farm is set to be completed by E.On Climate and Renewables in three phases. The county and the company reached an agreement that E.On would receive a 100 percent tax exemption for the first year, with 10 percent removed each subsequent year until full taxable status is reached.
"E.On wanted to have the option to elect to file bonus depreciation
as other companies do on the turbines since that schedule is used for the company's federal tax basis," explained county assessor Jamie Shepherd.
Shepherd added that E.On will be required to make a payment in lieu of taxes (PILOT), which will be distributed to local taxing units.
"This will help the school, libraries, and other public entities, along with all county taxpayers," she said.
E.On isn't the only company that stands to benefit from bonus depreciation. Through the end of the year, companies are allowed to claim a 100 percent bonus depreciation deduction for qualifying fixed assets