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Thread: US-American Tax Credits

  1. #1
    Senior Member Uwe Jens Lornsen's Avatar
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    US-American Tax Credits

    While investigating the US-American wind power industries and booms,
    I came around the word 'tax credit' .

    An explanation I have found here :
    Refundable Tax Credits
    Refundable tax credits are the most beneficial credit, as they are entirely refundable.
    This indicates that, regardless of a taxpayer’s income or tax liability, he is entitled to the entire amount of the credit.

    This is true even if the refundable tax credit reduces the tax liability below $0.
    In that situation, the taxpayer is due a refund.

    As of 2017, probably the most popular refundable tax credit is the Earned Income Tax Credit (EITC).

    Other refundable tax credits are available for education, healthcare coverage and for raising children.
    https://www.investopedia.com/terms/t/taxcredit.asp


    The thing is , when it comes to foreigners fetching refundable tax credit by investing millions of Dollars
    in wind farms , then they will get up to 30% of the investment costs payed out by the State and Federal Government .
    A person , that invests 100 Mio. US-Dollars somewhere in Oklahoma , to build up 25 wind turbines at a
    single cost of 4 Mio. , will receive 30 Mio. Dollars into his pocket if I am not mistaken .


    What are the experiences of our US-America based forum members ?


    An apparently critical website about these enormous subsidiaries / subsidies towards
    wind energy I have found here :
    * 93% of wind companies are out-of-state and foreign-owned
    * Only 7% of wind company ownership is Oklahoma-based

    * The term “carpet baggers” is truly applicable to these out-of-state and foreign wind companies.
    ** They don’t live here, don’t vote here, and don’t contribute to Oklahoma communities or economy.
    ** Oklahomans are being forced to sacrifice the education of Oklahoma’s children for the benefit of out-of-state companies.
    http://www.thewindfallcoalition.com/facts.html
    Mk 10:18 What do you call me a good master, no-one is good .

  2. #2
    Senior Member Drusilla's Avatar
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    I'm not US- based and I honestly don’t have enough knowledge on tax credits except that it’s a good enticement if you’re trying to find investor for a project development proposal.

    It also opens as an opportunity to trade tax credits. I’ve heard it proposed but don’t know anyone who has done it.

    Anyway, whenever there’s extra profit (or credit if you must), there’s room to launder.

  3. #3
    Senior Member Uwe Jens Lornsen's Avatar
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    Some webpages I have found ..

    Obama-era apparently had an Investment Tax Credit ITC , and especially the one
    in regards to wind energy is being phased out the next few years .

    Now the Production Tax Credit PTC becomes the main subsidy in the renewable energy sectors .
    Because these early wind projects were fueled by investment tax credits based on installation rather than performance,
    they were plagued with issues of low productivity and equipment reliability.[1]

    Those investment tax credits expired in 1986, which forced investors to focus on improving the reliability and efficiency of their turbines.[1]

    The 1990s saw rise to a new type of tax credit, the production tax credit, which propelled technological improvements
    to the wind turbine even further by encouraging investors to focus on electricity output rather than installation.[2]
    https://en.m.wikipedia.org/wiki/Unit..._Energy_Policy


    Trading of Tax Credit :
    Monetizing Tax Credits
    Many small businesses don’t have enough tax liability to benefit from the full amount of the tax credit,
    and most credits will only reduce liability and are not refundable.

    Instead of directly taking advantage of the credit, a business with a large credit and small tax liability
    can use the credit to raise financing from a third party investor.

    Since the tax credits are generally transferable, the business that has the credit can sell it to an investor
    in exchange for a percentage of the credit’s value.
    For example, a credit for a tax rebate of $10,000 can be sold for $8,000 to an investor.
    This means the investor can apply the credit to his tax liability, and the business can use the cash immediately in its operations.
    https://smallbusiness.chron.com/inve...dit-67549.html


    Corporation Tax Credit CTC
    Program Type:
    Corporate Tax Credit
    Rebate Amount:
    30% for solar, fuel cells, wind
    10% for geothermal, microturbines and CHP

    Summary:
    Note: The Consolidated Appropriations Act, signed in December 2015, included several amendments to this credit which applied only to solar technologies and PTC-eligible technologies. However, the Bipartisan Budget Act of 2018 reinstated this tax credit for the remaining technologies that have historically been eligible for the credit.

    The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently in February 2018. The table below shows the value of the investment tax credit for each technology by year. The expiration dates are based on when construction begins.
    https://www.energy.gov/savings/busin...tax-credit-itc


    Property Tax versus Sales Taxes
    Oil and gas wells are also subject to
    sales and
    use taxes and
    gross production taxes,
    though wind energy projects are exempt.

    Wind energy projects are subject to ad valorem (property) taxes,
    but oil and gas wells are exempt.
    https://newsok.com/article/5582680/t...-wind-industry
    Mk 10:18 What do you call me a good master, no-one is good .

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