Energy

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 […]

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 […]

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, […]

Fossil Energy Research and Development Program

In the Department of Energy (DOE), the Office of Fossil Energy manages the Fossil Energy Research and Development Program (FER&D), which includes the R&D Programs in Advanced Coal Energy Systems & Carbon Capture Utilization and Storage (CCUS), Natural Gas Technologies and Unconventional Fossil Energy Technologies; as well as funding for the operations, infrastructure and R&D […]

Carbon Capture and Sequestration Credit (45Q)

Qualifying taxpayers can claim the carbon capture and sequestration credit—often referred to by its section in the tax code (45Q)—for every metric ton of carbon oxide they capture and sequester that would have otherwise been released into the atmosphere. Congress created the 45Q credit in the Emergency Economic Stabilization Act of 2008 (commonly, the “Bank […]