Biofuels tax abatements mean lost revenue

Towns weigh trade-offs of incentives to plants

If Bill Roederer had more money, he’d figure out what to do with that empty swimming pool.

The Ogden schools superintendent has a wish list of renovations for the 40-year-old high school that would include turning a leaky indoor pool into something useful.

So it was difficult when Roederer recently watched the county offer $7.5 million dollars in potential property tax revenue to a new ethanol plant. Schools would have received most of that money.

“It’s not a school’s best friend when they give those tax abatements, but you certainly understand why because you want to attract these types of businesses into the community,” said Roederer, who supports the county’s decision to award the tax breaks to Alternative Energy Sources over 13 years.

From central Iowa to southern New Jersey, states, counties and cities are following the lead of the federal government in offering tax credits, grants, loans and other publicly financed incentives to attract biofuel developers.

Des Moines Register