Further observations on the taxation of regulated utilities

Journal Article · Thu Nov 10 04:00:00 EST 1977 · Public Util. Fortn.; (United States)

OSTI ID:5433034

Corey, G R

The conclusion of a series of articles on the impacts of utility tax reforms on capital formation makes two suggestions of ways to make investments more attractive. A deferment of individual income taxes on dividends that are reinvested in new common stock is favored by most utilities over all other reform proposals as the best way to raise the large amounts of capital needed for new construction. Utility rate bases that include construction work in progress would help to relieve some of the barriers to investment due to long construction lead times. The additional revenues would require changes in the income tax laws to allow the additional income to be offset with depreciation. These suggestions are supported by a review of current investment problems and illustrations of how the reforms could function. (DCK)

• Research Organization: Commonwealth Edison Co., Chicago
• OSTI ID: 5433034
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 100:10; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
CAPITAL
CHARGES
CONSTRUCTION
ECONOMIC IMPACT
ECONOMIC POLICY
FINANCIAL INCENTIVES
INCOME
INVESTMENT
PUBLIC UTILITIES
TAXES