Improving the Efficiency of Minnesota’s Industries
The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/improving-efficiency-minnesotas-industries/This November 2007 report by David Morris and Ann Robertson evaluates the evaluates that issue by analyzing the impact of the proposed $1.5 billion tax shift legislation, the Economic Efficiency and Pollution Reduction Act (EEPRA) on Minnesota’s most energy-intensive business sectors and estimating the potential for those sectors to offset any increased tax burden through cost-effective efficiency improvements.
Under EEPRA, energy-intensive businesses would pay higher net taxes while energy-efficient businesses would pay lower net taxes. While this is an intended outcome of the tax shift, businesses in Minnesota are concerned that the tax shift could impose a competitive burden on certain sectors.
