Now about that 46% IOU tax rate. [Investor-owned utilitties tax breaks]

Journal Article · Sat Mar 01 04:00:00 EST 1980 · Public Power; (United States)

OSTI ID:5443695

Goldfield, C

The author says the record of investor-owned utility (IOU) Federal income tax payments indicates that Class A and B IOUs pay about one percent of gross and five to six percent of net revenues in taxes, far from the theoretical 46 percent claimed in comparisons with public power. He points out that the Internal Revenue Code provides two tax breaks (accelerated depreciation and investment tax credits) that keep the IOUs' taxes low. IOUs can separate their ratemaking account book from their income-tax book because of normalization allowances. These combined with tax benefits were devised to encourage utility investment and are supplemented by tax-exempt financing bonds for pollution control equipment. (DCK)

• OSTI ID: 5443695
• Journal Information: Public Power; (United States), Journal Name: Public Power; (United States); ISSN PUPOA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
ACCOUNTING
ELECTRIC UTILITIES
FINANCIAL INCENTIVES
INCOME
INVESTMENT
MANAGEMENT
PUBLIC UTILITIES
TAXES