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Governor announces first renewable energy tax abatement

By ThisIsReno

GOVERNOR’S OFFICE NEWS RELEASE

CARSON CITY — Governor Jim Gibbons yesterday announced a major step in the future of renewable energy in Nevada. Nevada Energy Commissioner Dr. Hatice Gecol has awarded the first renewable energy tax abatements of $10.4 million to Ormat Technologies, Inc., a Reno-based Corporation. The award will allow the company to create 60 new construction jobs in the Pershing County area.

Ormat’s new project in Jersey Valley, located in Pershing County, received approximately $10.4 million in partial tax abatements over 20 years. Pershing County Commissioners approved the application for the property tax abatements and supported the approval of sales and use tax abatement for the project at their May 19, 2010 meeting.

“This first renewable energy tax abatement award signifies an important step for Nevada,” Governor Jim Gibbons said, “Renewable energy has the potential to supply a significant portion of our state’s energy needs, provide economic development opportunities for rural communities like Pershing County, diversify our economy, and create high-paying jobs at this crucial time in Nevada.”

Ormat’s facility is a 15-megawatt geothermal project which will provide clean energy to 11,250 homes for the next 20 years in Nevada. The facility will employ nearly 60 construction workers and create eight to 10 new permanent jobs during its life time. For the next three years, the Pershing County School District will gain local school support tax in the amount of $738,810 and the local government will collect $4.14 million in property taxes over the abatement period.

Ormat is headquartered in Reno and is engaged in the geothermal and recovered energy power business.

Assemblywoman Marilyn Kirkpatrick sponsored the Renewable Energy Tax Abatement legislation in the 2009 session in order to attract developers to the state’s renewable energy resources and build new transmission infrastructure.

More details about the project and Ormat’s application for the tax abatement can be found at the Commissioner’s web site at: http://renewableenergy.state.nv.us/TaxAbatement_projects.htm

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