A GROUP OF UTILITIES IS PRESSING CONGRESS TO ALLOW FASTER TAX DEPRECIATION for generating equipment.
The group, organized by the Edison Electric Institute, wants “any property used in the generation of electricity” to be assigned a 10-year “class life” for depreciation. Most gas- and coal-fired power plants are depreciated today over 15 or 20 years, if located in the United States, or 22 or 28 years, if located abroad. The proposal would mean such power plants could be depreciated over seven years in the United States or 10 years overseas. It would spark a major revival in equipment leasing.
Rep. Bill Archer (R.-Texas), chairman of the House tax-writing committee, told committee republicans in a closed-door meeting in June that one of his priorities is to pass legislation this summer to update depreciation allowances.
High-tech companies have apparently already been promised faster depreciation for their assets. The utilities are playing catchup. They have hired Washington lobbyist Ken Kies, who used to work for Archer.