Full Title: The Impact of Three Tax-Reform Proposals on the Financial Performance of Energy Plants
Author(s): Jason Burwen
Publisher(s): Bipartisan Policy Center (BPC)
Publication Date: September 1, 2015
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Description (excerpt):
In recent years, several members of Congress have proposed comprehensive tax reforms: Representative David Camp in February 2014, Senator Max Baucusi in December 2013, and Senators Ron Wyden and Dan Coats in 2011. This study quantifies the impact of the Baucus, Camp, and Wyden-Coats proposals on the illustrative project economics of different electricity-generation sources. We at AEIC used a model that estimates the financial performance of electricity-generating facilities to set up an equivalent comparison of the impact of the three tax-reform proposals on three illustrative facilities: a wind power project, a solar-photovoltaic (PV) project, and a combined-cycle gas turbine (CCGT) power plant. Specifically, we examined the impact of changes to the corporate income-tax rate, depreciation rules, and energy-specifi c tax credits under the three proposals.