Norway plans resource tax on onshore wind farms

OSLO (Reuters) – Norway will introduce a resource rent tax on onshore wind power from 2024, although existing facilities will get “generous transitional arrangements”, the government said on Friday.

“The proposal will ensure that a larger share of the value added in the wind power industry will accrue to society as a whole. Host municipalities will be better off under the proposal,” the government said in a statement.

The government is proposing an effective tax rate of 35%, structured as a cash flow tax with an immediate deduction of investment costs.

“At least half of the revenues will accrue to municipalities. This is achieved through the production tax, supplemented by an additional appropriation in years of high resource rent,” it added.

(Reporting by Terje Solsvik, editing by Gwladys Fouche)