Incentives belie benefits of green power projects, say Nevada lawmakers

It is alleged that Nevada has handed out tax incentives worth an estimated $45 million to lure solar and geothermal projects to the state over the past four years, while it has received only promises in return.

The projects' developers have promised to create only 89 permanent jobs - a number so small that some lawmakers are questioning whether taxpayers are getting a good return on their investment in the incentives.

Although solar and geothermal projects create ''wonderful construction jobs in the short term, these projects do not leave a lot of full-time jobs,'' US senator Randolph Townsend complains.

However, the companies that received the tax incentives and the Nevada Commission on Economic Development, which helped lure the companies to the state, argue that full-time job creation is a poor measure of projects' worth to the state as they create a significant number of temporary jobs.

President Barack Obama has pledged to push for a 25-per cent electricity production target from renewable sources by 2025, with a 10-per cent standard achieved early in the next decade, which has compelled many states to rethink their policy of declaring incentives to renewable energy production facilities.

Nevada has approved tax incentives for three solar energy projects in Southern Nevada and four geothermal projects in rural Nevada. The tax abatements include refunding all but 2 per cent of sales tax on initial capital equipment, half of property taxes for 10 years and a portion of payroll tax for four years.