In Wisconsin, Biden Unveils Historic Tax Break for Rural Co-ops

WESTBY, WISCONSIN, September 5, 2024 – During a visit to Wisconsin on Thursday, President Joe Biden announced an historic tax break for rural cooperatives, describing it as "a game-changer."

Speaking at the Vernon Electric Cooperative in the rural town of Westby, Biden said that the new tax break ensures, for the first time in U.S. history, that nonprofit cooperatives can benefit from the same clean energy tax credits that for-profit utilities have used for decades.

“This significant change will reshape how these nonprofit organizations can finance their future,” Biden said. He said it will boost cooperatives' ability to provide affordable clean energy while freeing up resources to invest in other critical areas, such as expanding broadband access. More than 200 rural electric cooperatives across the U.S. already provide broadband services.

Biden also announced $7.3 billion in grants to 16 electric cooperatives nationwide, aimed at helping rural communities transition to affordable clean energy.

Among the recipients was Wisconsin’s Dairyland Power Cooperative, which will receive $580 million to develop and purchase solar and wind power and energy storage solutions across the Midwest.

Biden drew comparisons between these modern investments and FDR’s Rural Electrification Act, emphasizing the importance of infrastructure projects for rural America's future.

Transitioning to speak about his administration’s $1.6 billion investment to expand broadband access across Wisconsin, Biden remarked “affordable high-speed internet is just as vital today as electricity was a century ago."

“Since I took office, 72,000 more Wisconsin homes and small businesses have access to high-speed internet for the first time ever,” Biden said. “We’re going to keep going.”

The president also touted the success of the CHIPS and Science Act in spurring a resurgence in U.S. semiconductor manufacturing in the region. 

“With the leadership of your Governor, you’ve already added 200,000 new jobs and attracted over $5 billion in private sector investment for clean energy and advanced manufacturing in Wisconsin,” Biden said. 

He pointed to a recent $3 billion investment by Microsoft to build a new artificial intelligence data center in Racine, calling it a major boost for rural communities across the state.

“It’s going to create thousands of good-paying jobs on-site and across the state, creating even more opportunities in rural communities,” he said. The data center was expected to create 2,300 union construction jobs and 2,000 permanent jobs over time.

The Microsoft center will be built on the same land as a failed $10 billion investment from Taiwanese electronics manufacturer Foxconn six years ago "which left behind Wisconsin residents and workers," the White House has said.