EDPR also provides direct economic returns to the local and regional communities by means of land leases, local taxes and property taxes. For example, in the US, property tax is paid to state and local entities in the states where the assets are held, which benefits the local communities. This sharing of revenues is a large contribution to the yearly budget of rural municipalities where wind farms are located.
Furthermore, during the construction of our wind farms, the local community can see an influx of temporary construction workers that provide a positive impact on the local economy through local spending and increased sales tax revenue.
In some US states where abatements and exemptions are allowed by law, we may make payments in lieu of taxes (PILOTs) to the local taxing jurisdictions. PILOT payments help recover some of the lost tax revenue and in 2011, we made a total of 6.8 million euros in PILOT’s to local communities in the areas in which we operate in the US.
PILOT payments are another method of favourably impacting the local communities. In 2011, the PILOT proceeds paid to Cloud County, on behalf of Meridian Way Wind Farm in Kansas were used by the county to construct transportation infrastructure for its citizens.