Energy

Bioenergy Program for Advanced Biofuels

The Bioenergy Program for Advanced Biofuels (BPAB) is intended to pay advanced biofuel producers to expand their production levels. Other than corn starch ethanol, nearly every other type of biofuel is eligible for the program, including ethanol, biodiesel, biogas, butanol or biofuels derived from cellulose (like perennial grasses or agricultural residues), sugar or starches, waste […]

Expensing of Exploration and Development for Non-fuel Minerals

Expensing of costs associated with exploration and development refers to the ability of some extractive industries to deduct prospecting costs fully from their taxable income immediately or as they are incurred rather than waiting for those activities to generate income. This is an exception to general tax rules, which normally require companies to capitalize these […]

Special Tax Rate for Nuclear Decommissioning Reserve Funds

Owners of nuclear power plants can claim a tax deduction for any payments made to a Nuclear Decommissioning Reserve Fund in a tax year. The fund is used to satisfy any liabilities associated with decommissioning a nuclear power plant and the costs of administering the fund, but can also be used for investing. The payments […]

Oil Royalty Relief – Deep Water

Oil and gas companies that drill on public lands or in federal waters pay royalties for the oil and gas they extract. The amount of royalties they pay depends on the amount extracted, the market price for oil and gas, and the royalty rate. Typically, the government sets limits on the amount of oil and […]

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 acquiring the […]

Natural Gas Distribution Lines

Created by the Tax Reform Act of 1986, the Modified Accelerated Cost Recovery System (MACRS) is the system within the Internal Revenue Code for determining the depreciable lives of assets. Businesses “recover” the costs of tangible property (assets) by making annual deductions from their taxable income for depreciation over the specified life of the property. […]

Expensing of Exploration and Development Costs, Oil and Gas

Expensing of costs associated with exploration and development refers to the ability of some extractive industries to deduct these costs fully from their taxable income immediately or as they are incurred rather than waiting for those activities to generate income. This is an exception to general tax rules, which normally require companies to capitalize these […]

Price-Anderson Act

Price-Anderson provides for the process of resolving liability claims in response to an accident at a commercial nuclear power plant. The act creates two tiers of liability coverage. The first tier requires commercial nuclear power plant owners to obtain enough private insurance to cover liability claims up to $375 million. If claims exceed the tier […]