Minor memos

Minor memos

June 15, 2013 | By Keith Martin in Washington, DC

It would cost the US government $24.7 billion over 10 years in lost tax revenue to make production tax credits for wind, geothermal, biomass, landfill gas, incremental hydroelectric and ocean energy projects permanent as the Obama administration has proposed, according to a Joint Committee on Taxation estimate in May. Some wind industry lobbyists believe that Congress will extend the tax credits again in 2014 if it has not taken up corporate tax reform by then . . . . The Defense Department is expected to announce another round of military base closures in 2015. This could complicate efforts by various bases to sign up long-term contracts to buy electricity from renewable energy suppliers . . . . The difficulty ahead for corporate tax reform can be seen in the fact that the corporate revenue raisers in the budget that the Obama administration delivered to Congress in early April would add up only to $94.6 billion over 10 years. A 1% reduction in the corporate tax rate would lose $100.6 billion in revenue over the same period, according to the Joint Committee on Taxation. Both political parties want to reduce the tax rate significantly as part of corporate tax reform. The Democrats want to reduce the rate to 28% from the current 35%, and the Republicans want to reduce it to 25%. . . . . Congressional insiders put the odds of corporate tax reform in a poll by the National Journal in May as follows: excellent 0-1%, good 5-8%, fair 33-39% and poor 56-58%.