What are the past and future tax revenue and economic impacts of the tax preference to the taxpayer and to the government if it is continued?

The actual credit claimed by utilities in Fiscal Year 2015 was $8 million.  JLARC staff estimate direct beneficiaries will save $55 million in the 2017-2019 Biennium.  The amount claimed has increased by at least 78 percent each year since the credit was enacted.  Estimates show the growth will slow as utilities reach their caps over the next several years.

Estimated 2017-2019 Beneficiary Savings for Customer Generated Power Public Utility Tax Credit

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If the tax preference were to be terminated, what would be the negative effects on the taxpayers who currently benefit from the tax preference and the extent to which the resulting higher taxes would have an effect on employment and the economy?

If the tax preference were eliminated, utilities would likely cancel their payment programs.  The utilities would not incur any losses because the credit they receive is used to cover the cost of payments that would likely cease.  Existing participants would no longer receive incentive payments for the renewable energy power they produce.  It is unknown the effect this would have on new installations or the local renewable energy technology industry.  The preference is currently scheduled to expire in 2020.