Norway has unveiled plans to introduce a resource rent tax on onshore wind power, effective from 2024, with provisions for existing facilities to enjoy “generous transitional arrangements,” as revealed by the government on Friday.
The government's stated objective with this proposal is to ensure a more substantial portion of the value generated within the wind power sector contributes to the broader society. In a statement, they emphasized that host municipalities would experience enhanced benefits under this plan.
Under the outlined proposal, a 35% effective tax rate will be applied, structured as a cash flow tax that provides an immediate deduction for investment costs.
Furthermore, the government has designed a mechanism to direct at least half of the tax revenues toward municipalities. This will be achieved primarily through a production tax, supplemented by additional allocations during years characterized by high resource rent.
