Emergency Bill - Part 2
As I mentioned before, the bill is full of new Tax Credits (i.e. Tax Breaks) except for a few places where there are Negative Tax Credits (i.e. Tax Increases):
So any company in 'oil related qualified production activities' are the lucky recipients of a 3% tax increase, courtesy of Senator Dodd. Note that this affects every level of the supply chain - production, refining, processing, transportation AND distribution. Higher taxes for corporations get passed onto who? I guess it was just two months ago that energy was the hot issue on the hill...obviously the impetus to lower energy costs has been greatly reduced.(Pg 234) 7 TITLE IV—REVENUE PROVISIONS 8 9 SEC. 401. LIMITATION OF DEDUCTION FOR INCOME AT- 10 TRIBUTABLE TO DOMESTIC PRODUCTION OF 11 OIL, GAS, OR PRIMARY PRODUCTS THEREOF. 12 (a) IN GENERAL.—Section 199(d) is amended by re- 13 designating paragraph (9) as paragraph (10) and by in- 14 serting after paragraph (8) the following new paragraph: 15 ‘‘(9) SPECIAL RULE FOR TAXPAYERS WITH OIL 16 RELATED QUALIFIED PRODUCTION ACTIVITIES IN- 17 COME.— 18 ‘‘(A) IN GENERAL. - If a taxpayer has oil 19 related qualified production activities income for 20 any taxable year beginning after 2009, the 21 amount otherwise allowable as a deduction 22 under subsection (a) shall be reduced by 3 per- 23 cent of the least of— (Pg 235) 1 ‘‘(i) the oil related qualified produc- 2 tion activities income of the taxpayer for 3 the taxable year, 4 ‘‘(ii) the qualified production activities 5 income of the taxpayer for the taxable 6 year, or 7 ‘‘(iii) taxable income (determined 8 without regard to this section). 9 ‘‘(B) OIL RELATED QUALIFIED PRODUC- 10 TION ACTIVITIES INCOME.—For purposes of 11 this paragraph, the term ‘oil related qualified 12 production activities income’ means for any tax- 13 able year the qualified production activities in- 14 come which is attributable to the production, 15 refining, processing, transportation, or distribu- 16 tion of oil, gas, or any primary product thereof 17 during such taxable year. 18 ‘‘(C) PRIMARY PRODUCT.—For purposes of 19 this paragraph, the term ‘primary product’ has 20 the same meaning as when used in section 21 927(a)(2)(C), as in effect before its repeal.’’.
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