Three issues in utility tax allowance determinations

Journal Article · Thu Sep 01 04:00:00 EDT 1977 · Public Util. Fortn.; (United States)

OSTI ID:7212584

Gillmore, D S

A discussion of utility income taxes explores issues that have received extensive media coverage and concludes that concern over ''phantom taxes'' is unjustified. Primarily a tax deferral, the utility income tax allowance benefits both the utility and the ratepayer. The author reviews income tax laws and finds that tax-timing differences need to be offset by normalizing the difference between financial and tax accounting. A review of investment tax credit laws concludes that these credits, which were established by Congress so that utilities could stimulate employment and construction, belong to the stockholders and can be passed on to the ratepayer. Consolidated effective tax rates, while appearing to require only simple computation, are actually complex, with numerous inherent problems. (DCK)

• OSTI ID: 7212584
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 100:5; 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
ACCOUNTING
CONSTRUCTION
DATA
ECONOMIC POLICY
ECONOMICS
FINANCIAL DATA
FINANCIAL INCENTIVES
FINANCING
INCOME
INFORMATION
LEGISLATION
MANAGEMENT
PUBLIC OPINION
PUBLIC RELATIONS
PUBLIC UTILITIES
TAXES
WORK