Bill threatens third-party financing in public sector

Journal Article · Mon Aug 22 04:00:00 EDT 1983 · Energy User News; (United States)

OSTI ID:5524084

Betts, M

Tax benefits for energy service contracts financed for government agencies and tax-exempt groups by third parties may be eliminated if H.R. 3110 (and S. 1564) pass. The bill eliminates third-party financing for cogeneration, alternative energy, and conservation projects. Some fear the Internal Revenue Service will also apply it to energy management in other sectors. The bill's intent is to slow the transfer of tax incentives from public to private investors through leasing deals, but critics say the bill needs to distinguish between constructive and abusive transactions. Two major provisions of the Pickle bill deny accelerated depreciation benefits leased to local governments and tax-exempt organizations and make it more difficult for energy projects to qualify as service contracts. (DCK)

• OSTI ID: 5524084
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 8:34; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
291000* -- Energy Planning & Policy-- Conservation
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
DEPRECIATION
ENERGY CONSERVATION
FINANCIAL INCENTIVES
FINANCING
LEGISLATION
TAX CREDITS