Cogeneration alternate energy could be hurt by tax plan

Journal Article · Mon Jun 03 04:00:00 EDT 1985 · Energy User News; (United States)

OSTI ID:5794323

Hume, M

President Reagan's tax proposal could hurt cogeneration and alternative energy projects by extending depreciation periods from five to ten years. This would reduce tax deductions, and require users to allow for higher tax payments in their payback calculations. The proposal would take effect on January 1, 1986, with no allowance for projects now under construction or under negotiation. Lawyers find the plan less harmful than the original Treasury proposal even though it replaces the Accelerated Cost Recovery System. The proposal deals more severely with cogeneration equipment than with other equipment that would have a seven-year or less depreciation, and could group it later with utility equipment that has a 15-year depreciation. If adopted, the plan will be a disincentive for investors in cogeneration and energy-producing equipment.

• OSTI ID: 5794323
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 10:22; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290800 -- Energy Planning & Policy-- Heat Utilization-- (1980-)
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320304* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Waste Heat Recovery & Utilization
COGENERATION
DEPRECIATION
DEUS
ENERGY SYSTEMS
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
INVESTMENT
PAYBACK PERIOD
POWER GENERATION
STEAM GENERATION