Tax reform bill would slash utility subsidies

Journal Article · · Power Line; (United States)

OSTI ID:6218185

Morgan, R E

The House Ways and Means Committee approved a tax reform bill which would phase out most of the four largest tax subsidies (investment tax credits, tax-exempting pollution control bonds, expensing of construction-period interest, and most depreciation benefits) now enjoyed by utilities by 1990. The changes could undermine a threatened resurgence of power plant construction in the next decade and would eventually eliminate most of the phantom taxes charged by electric utilities. Because the committee decided to delay most of the cuts until 1991, utilities may reap a tax windfall over the next five years while new power plants go on line. Lobbying to weaken the bill will be intense. A chart compares current law and the committee plan to show the impact on 18 provisions.

• OSTI ID: 6218185
• Journal Information: Power Line; (United States), Journal Name: Power Line; (United States) Vol. 10:4; ISSN POLID
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
296000* -- Energy Planning & Policy-- Electric Power
DEPRECIATION
ECONOMIC IMPACT
ELECTRIC UTILITIES
FINANCIAL INCENTIVES
FINANCING
LAWS
LEGISLATION
POWER PLANTS
PUBLIC UTILITIES
SUBSIDIES
TAX CREDITS
TAX LAWS
TAXES