The Advanced Reactor Demonstration Program (ARDP) uses taxpayer money to develop and demonstrate advanced reactors through cost-share agreements with the nuclear industry. There are three pathways through which industry partners can apply: (1) advanced reactor demonstrations, which will support the development of advanced nuclear reactors that are expected to be fully functional within seven years […]
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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 acquiring the […]
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Expensing of Tertiary Injectants
Tertiary recovery, sometimes called “enhanced oil recovery,” refers to a variety of methods used to increase the productivity of an oil and gas reservoir by injecting materials into the formation to increase the reservoir pressure, increase the mobility of the remaining hydrocarbons within the formation, or increase separation between injected fluids (used for secondary recovery) […]
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Credit for Investment in Clean Coal Facilities
An investment tax credit is available for power generation projects that use integrated gasification combined cycle (IGCC) or certain other coal-based electricity generation technologies. IGCC and other advanced coal projects must separate and sequester at least 65 percent of the project’s total carbon emissions and gasification projects must separate and sequester at least 75 percent […]
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Cellulosic (Second Generation Biofuel) Production Tax Credit
Established by the Food, Conservation, and Energy Act of 2008, the Cellulosic Production Tax Credit is a credit of up to $1.01/gallon for “liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna.” Lignocellulose and hemicellulose are both components of the cell […]
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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 and receive […]
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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 commercial energy projects that use advanced technologies. Amendments to the program have expanded the list of eligible technologies to include: nuclear, certain coal, carbon capture and sequestration (CCS) technologies, hybrid gas or diesel […]
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Expensing of Exploration and Development Costs, Other Fuels
Established for this category in 1966, the 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, […]
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