Phantom Tax Reform: Hearing Before the Subcommittee on Energy Conservation and Power of the Committee on Energy and Commerce, House of Representatives, Ninety-eighth Congress, Second Session, on H.R. 4923 ... June 12, 1984, Volume 4 |
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Page 15
... accelerated depreciation . Congress enacted these tax code provisions to assist all U.S. regu- lated and nonregulated industries , including utilities , with capital formation . Current law requires that these tax benefits be normal ...
... accelerated depreciation . Congress enacted these tax code provisions to assist all U.S. regu- lated and nonregulated industries , including utilities , with capital formation . Current law requires that these tax benefits be normal ...
Page 20
... accelerated depreciation allowed by the tax code . These provisions , combined with other tax breaks , sub- stantially reduce the taxes which a utility pays , and , in fact , many do not pay taxes at all . According to a Joint Tax ...
... accelerated depreciation allowed by the tax code . These provisions , combined with other tax breaks , sub- stantially reduce the taxes which a utility pays , and , in fact , many do not pay taxes at all . According to a Joint Tax ...
Page 26
... by $ 50 million . Again , consumers pay the utility's taxes as if it depreciated its plant over its full useful life , rather than the tax code's accelerated depreciation life . Accordingly , under this example , customers would 26.
... by $ 50 million . Again , consumers pay the utility's taxes as if it depreciated its plant over its full useful life , rather than the tax code's accelerated depreciation life . Accordingly , under this example , customers would 26.
Page 46
... accelerated depreciation , permits more rapid capital cost recovery for tax purposes than when straight line depreciation is used . Normalization of these tax benefits results in lower cost to the utility which benefits ratepayers ...
... accelerated depreciation , permits more rapid capital cost recovery for tax purposes than when straight line depreciation is used . Normalization of these tax benefits results in lower cost to the utility which benefits ratepayers ...
Page 47
... accelerated depreciation or the investment tax credit thus circumventing the intent of these tax policies . -- Critics argue that normalization constitutes Federal intrusion into a basically State and local matter . This argument falls ...
... accelerated depreciation or the investment tax credit thus circumventing the intent of these tax policies . -- Critics argue that normalization constitutes Federal intrusion into a basically State and local matter . This argument falls ...
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Common terms and phrases
accelerated depreciation accumulated deferred allowed amount asset bill capital formation cash flow Chairman charged cogeneration Congress Conservation and Power construction consumers cost of service deferred taxes demand dollars earn economic normalization Edison Edison Electric Institute effect Elec electric rates electric utilities enacted Energy Conservation Energy Regulatory Commission equity facilities federal income taxes Federal Power Act Federal tax benefits FERC financing flow-through accounting funds future gigawatts hearings income tax normalization increase Internal Revenue Code investment credit investment tax credit investors least cost energy least cost planning least system cost legislation long-term lower million option OTTINGER paid percent Phantom Tax Reform Power Company power plants public utilities PWR & LT rate base rate of return ratemaking purposes ratemaking treatment ratepayers reduced result shareholders subsidies system cost plan tax benefits tax deferrals tax depreciation tax expense tax incentives testimony Treasury utility commissions utility companies utility's
Popular passages
Page 118 - Islands engaged in the regulation of utilities and carriers. Our chief objective is to serve the public interest by seeking to improve the quality and effectiveness of public regulation in America.
Page 76 - The objective of the credit is to reduce the net cost of acquiring new equipment; this will have the effect of increasing the earnings of new facilities over their productive lives and increasing the profitability of productive investment.
Page 92 - Expenditures by public utilities in connection with business activities subject to public regulation of rates would generally not be eligible for the credit. This rule would exclude electric, gas, water, telephone, and similar public utility corporations. Investments by these regulated monopoly industries are largely governed by determined public requirements and are subject to regulated consumer service charges designed to provide a prescribed after-tax rate of return on investment.
Page 302 - The Future of Electric Power in America: Economic Supply for Economic Growth (Washington, DC: 1983).
Page 144 - In calculating whether the 5-cent fare will yield a proper return, it is necessary to deduct from gross revenue the expenses and charges; and all taxes which would be payable if a fair return were earned, are appropriate deductions. There is no difference in this respect between state and Federal taxes or between income taxes and others. But the fact that it is the Federal corporate income tax for which deduction is made must be taken into consideration in determining what rate of return shall be...
Page 72 - The faster tax writeoff would increase available working capital and materially aid growing businesses in the financing of their expansion.
Page 72 - Policy in the Congressional Research Service of the Library of Congress. I would like to thank you for the invitation to appear before you today to discuss the economic and budgetary effects of current tax proposals.
Page 101 - ... (B) Rate base reduction. If the base to which the taxpayer's rate of return for ratemaking purposes is applied is reduced by reason of any portion of the credit allowable by section 38 (determined without regard to this subsection) . (3) Special rule for immediate flow-through in certain cases.
Page 46 - More liberal depreciation allowances are anticipated to have far-reaching economic effects. The incentives resulting from the changes are well timed to help maintain the present high level of investment in plant and equipment.
Page 47 - Senate that the purpose of the credit for investment in certain depreciable property, in the case of both regulated and nonregulated industries, is to encourage modernization and expansion of the Nation's productive facilities and to improve its economic potential by reducing the net cost of acquiring new equipment, thereby increasing the earnings of new facilities over their productive lives.