Energy

Exemption from Bond Arbitrage Rules

Holders of state and local bonds are allowed to exclude interest from those bonds from their gross income. This lowers the interest that must be paid by these entities in order to attract capital and incentivizes states and localities to make capital investments. While this deduction is not allowed for bond arbitrage, the practice of […]

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Excess of Percentage Over Cost Depletion, Other Fuels

Businesses are generally allowed to recoup capital costs associated with acquiring or creating an asset by deducting these costs from their taxable income. Typically, the costs are depreciated – deducted each year in proportion to the remaining useful life of the asset, corresponding to the income it generates. For natural resource assets, the costs of […]

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Excess of Percentage Over Cost Depletion, Oil and Gas

Businesses are generally allowed to recoup capital costs associated with acquiring or creating an asset by deducting these costs from their taxable income. Typically, the costs are depreciated – deducted each year in proportion to the remaining useful life of the asset, corresponding to the income it generates. For natural resource assets, the costs of […]

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Excess of Percentage Over Cost Depletion, Nonfuel Minerals

Businesses are generally allowed to recoup the capital costs associated with acquiring or creating an asset by deducting them from their taxable income. Typically, the costs are depreciated – deducted each year in proportion to the remaining useful life of the asset, corresponding to the income it generates. For natural resource assets, the costs of […]

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Domestic Manufacturing Tax Deduction for Oil and Gas Companies

For income from qualified domestic production activities, which includes oil and gas production, the code allows a deduction equal to 6 percent of income derived from this activity, limited to 50 percent of the manufacturers’ W-2 wages. Qualified production applies to property that is “manufactured, produced, grown or extracted within the United States.” The deduction […]

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Domestic Manufacturing Deduction for Coal and Other Hard Mineral Fossil Fuels

For income from qualified domestic production activities, which includes coal and other hard minerals, this tax break allows a deduction equal to 9 percent of income derived from qualified activity, limited to 50 percent of the manufacturers’ W-2 wages. Qualified production applies to property that is “manufactured, produced, grown or extracted within the United States.” […]

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Department of Energy Loan Guarantee Authority

The Department of Energy’s (DOE) Loan Guarantee Program was created for the purpose of lowering the financial risk of large private sector energy projects, including those that use new technologies. Nuclear, certain coal, and carbon capture and sequestration (CCS) technologies are all eligible. The program provides loan recipients with the backing of the U.S. Treasury […]

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Deductions for Foreign Tax – Dual Capacity

To prevent double taxation, current tax law allows U.S.-based corporations to receive a credit against their U.S. tax liability for the taxes they pay to foreign countries on income earned abroad – the Foreign Tax Credit (FTC). Special rules for claiming the FTC apply to companies called Dual Capacity taxpayers that pay a foreign levy […]

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