Under this proposal, the Government is suggesting an effective tax rate of 35 percent. This tax will be structured as a cash flow tax, allowing for an immediate deduction of investment costs. The resource rent tax is scheduled to go into effect on January 1, 2024. In most cases, power production income will be assessed based on the spot market price. For agreements made prior to September 28, 2022, the contract price will be used for valuation. Additionally, there will be a temporary exemption for standard fixed-price agreements and power purchase agreements for new projects signed between 2024 and 2030.
At least fifty percent of the revenues generated from this tax will go to municipalities. This will be achieved through the production tax, supplemented by extra funding during periods of high resource rent. Projections indicate that the gross revenues from the proposed resource rent tax will reach approximately NOK 300 million in 2024. After accounting for the deduction of production tax, net revenues are estimated to be around NOK 150 million for the same year. Initially, Government revenues are expected to be minimal, mainly due to the generous transitional provisions in place for existing wind farms.