Electric utilities, oil and gas groups praise tax reform bill
Energy trade associations responded positively to a sweeping tax reform bill unveiled by House Republicans on Thursday that they said would fuel investment in important energy infrastructure in the United States.
House Ways and Means Committee Chairman Kevin Brady (R-TX) introduced the Tax Cuts and Jobs Act on Thursday, a plan to overhaul the nation’s tax code for the first time in more than 30 years. It would lower the corporate tax rate to 20 percent from 35 percent and would allow businesses to immediately write off the full cost of new equipment to improve operations, among many other provisions to spur economic growth and increase the competitiveness of U.S. companies.
Edison Electric Institute (EEI) President Tom Kuhn noted that the bill included major provisions that EEI had said must be addressed, including: maintaining the federal income tax deduction for interest expense; maintaining the federal income tax deduction for state and local taxes; providing for the continuation of normalization, including addressing excess deferred taxes resulting from a reduction in the tax rate; and keeping dividend tax rates low and on par with capital gains.
“The legislation released today by House Republicans includes these important provisions, which will benefit customers and encourage much-needed investments in critical energy infrastructure,” Kuhn said. “These investments power the nation’s economy, create jobs, and deliver America’s energy future,” he said, adding that the single most important action lawmakers need to take this year to grow the U.S. economy is to pass comprehensive tax reform.
American Petroleum Institute President and CEO Jack Gerard praised the bill, highlighting the lowering of the corporate tax rate and strong cost-recovery provisions.
“… The House Ways & Means Committee took a bold step to modernize the nation’s tax code to sustain U.S. economic growth, spur strong energy investment, and create American jobs and we commend Chairman Brady for his tremendous leadership on this issue,” said Gerard, whose organization represents the oil and natural gas industry.
“The last comprehensive update to the U.S. tax code was in 1986 and significant proposals, like lowering the corporate tax rate and strong cost-recovery provisions, will help ensure that our tax system is smart, fair and pro-growth to benefit American consumers, businesses, and the economy,” Gerard said.
Beginning Nov. 6, the House Ways and Means Committee will mark up the tax reform bill. Committee members will propose changes and eventually vote on whether to send the legislation to the House floor. If the bill passes this year, most of its provisions will take effect on Jan. 1, 2018.
