Electric power sold in rural areas

From the 2024 DOR Tax Exemption Study

82.16.053 - Electric power sold in rural areas Description Light and power businesses may deduct income subject to the PU tax by selecting the lowest relevant option: - A percentage of wholesale power costs paid if they have: - More than 17 customers per mile of line: 0%. - More than 11, but less than 17 customers per mile of line: 30%. - More than 5.5, but less than 11 customers per mile of line: 40%. - Less than 5.5 customers per mile of line: 50%. - Wholesale power costs multiplied by the percentage that the average retail electric power rates for the business exceed the state average electric power rate. - $400,000 per month. Purpose To reduce electricity costs in rural areas. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.110 $1.130 $1.150 $1.170 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.040 $1.150 $1.170 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate