House Committee on Ways and Means

Credit for Production of Advanced Nuclear Power Facilities

The credit for production of advanced nuclear power applies to facilities with designs approved after 1993 and that are placed in service before 2021. It provides a 1.8 cent per kilowatt hour tax credit that can be claimed during the first eight years after a facility has been placed in service, subject to certain limitations […]

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 […]

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 […]

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 […]

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, […]