For the past five years, developers of geothermal, solar or wind power generation facilities have gotten a rebate from the state for the sales tax they pay on the major, permanent equipment that goes into their plants, but the tax credit will expire in June. Rep. George Eskridge, R-Dover, wants to extend it. "If we don't have the rebate, the sales tax rebate on wind generation, it will preclude development of wind energy in Idaho, because other states are more competitive," Eskridge said. A Boise State University study is in the works to look at the economic benefit of the rebate in the five years it's been in effect; lawmakers enacted it with a five-year sunset, which is why it expires this year.

"That's going to be probably a little controversial, because we're starting to develop a little bit of opposition to wind generation," Eskridge said. "It seems every time we get a legitimate power resource on the table, somebody finds a reason to object." Eskridge, who co-chairs an interim energy committee with Sen. Curtis McKenzie, R-Nampa, said the panel decided in August to wait for the BSU study before endorsing the extension. He's anticipating positive results, and hopes to co-sponsor an extension bill with McKenzie and several other lawmakers.

Eskridge said in the five years it's been effect, the rebate has meant about $3 million to $4 million in lost tax revenue to the state, but has generated much more than that in property taxes and other economic activity in the state. "That's what this study will show, those kinds of results," he said.