Tax law hurts public-sector conservation
An unexpected compromise in the 1984 tax reform act (HR 4170) could limit the number of energy management projects for tax-exempt users because it makes it harder to use third-party investors, although the arrangment cogeneration is still covered. Energy production contracts under the new bill will have to meet the stricter requirements of service contracts to receive tax benefits rather than being treated as leases. The change was designed to prevent the cancellation of utility contracts will small power producers and makes it easier for investors to take tax credits. The Wallop amendment to extend the tax benefits to schools and other tax-exempt users was defeated. Tax exempt users had been the best market for energy management contracts. The new law also cancels accelerated depreciation for property leased to tax-exempt users.
- OSTI ID:
- 6710533
- Journal Information:
- Energy User News; (United States), Vol. 9:27
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
ENERGY CONSERVATION
CONSTRAINTS
CONTRACTS
ENERGY MANAGEMENT SYSTEMS
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
INVESTMENT
LEASES
LEGISLATION
TAX CREDITS
ENERGY SYSTEMS
320100* - Energy Conservation
Consumption
& Utilization- Buildings
291000 - Energy Planning & Policy- Conservation