Property values are soaring in West Texas community because of the hundreds of newly-built wind turbines.

According to the AP, the deals give the energy companies operating the turbines massive tax breaks. In return, the school districts get part of the savings.

As per the information available, Texas schools earn millions on wind generated on state land, depending on how many megawatts are produced and the current price of electricity. Texas schools benefit from the increase in wind farms, because like oil and gas production on state lands, wind farms on state lands are required to pay land usage fees plus a portion of revenues to the State's Permanent School Fund, which is constitutionally dedicated to the schoolchildren of Texas.

The AP report highlighted that the school district with an enrollment of 201, is among the dozens on Texas plains that “have cut deals allowing them to collect hundreds of millions of dollars from wind farms without sending any of the money to the state”. The deals have their basis in the Texas Economic Development Act, a 2001 law that allows school districts to offer tax breaks similar to those handed out by county and city governments. Such property is taxed at full value for two years and then at a limited value for eight. A negotiated portion of the savings is passed on to the district.

The money that is channeled back to the school districts is known as payments in lieu of taxes, or PILOT agreements.

The four projects already in place will allow the Sterling City school district, the only one in the county, to collect at least $47 million over the next decade as compensation for more than $100 million in tax breaks it gave to wind farm operators.

Rising property values tied to the wind farms have already allowed the district to pass an $11.2 million bond to pay for new elementary and middle schools, a new gym and other facility improvements.