Xcel Energy paid no corporate taxes thanks to wind subsidies
Did you know that Xcel Energy, which had total revenues of over $3 billion in 2020, according to federal data, paid no federal income taxes in 2018, according to a report by the Institute on Taxation & Economic Policy?
It turns out that Xcel Energy was able to avoid paying any taxes because it constructed subsidy-generating wind turbines. According to the report, Xcel Energy had profits of $1.4 billion in 2018 but had a negative tax liability of $34 million that year.
How was Xcel able to pay fewer taxes than Minnesota families? It all boils down to the federal tax credits for wind and solar. According to the report, wind production tax credits reduced Xcel’s income taxes by $75 million. Accelerated depreciation reduced income taxes by $122 million.
This means that Xcel Energy is making electricity more expensive for Minnesota families and businesses and not paying a cent in federal income taxes. American Experiment has written exhaustively that wind turbines are unproductive sources of electricity, but they are prolific generators of tax credits that allow big business and billionaires to avoid paying taxes.
That’s why Warren Buffett is building so many wind turbines in Iowa. In fact, it’s the only reason.