Bloomberg and Inframation News Quote John Marciano on Impact of Tax Bill on Renewables
Akin Gump global project finance co-head John Marciano has been quoted in Bloomberg’s “Solar, Wind Face Stealth Tax Problems From Republican Compromise” from a report he wrote about the current tax legislation pending in Congress. The article looks at the impact on the solar and wind industries of the bill, which could be voted on this week.
The article reports that a deal meant to keep a big source of financing for solar and wind developers instead contains some hidden pitfalls. That, in turn, has created a lot of questions about the possible use of tax credits.
Discussing the uncertainty that remains, Marciano wrote that there are at least $3 billion “in investments that are currently on hold. This could affect $100 billion of power investments in the next ten years.”
Speaking with Inframation News for the article “Tax Bill Leaves Renewable Industry Better Off than Expected,” Marciano said this could lead to a situation “where investors have to make their investment during the year, but they’ll only calculate whether they’re subject to base erosion tax, which is dependent on multiple variables that you can’t effectively plan for, at the end of the year.”
Marciano added that this could also have an impact on existing investments. “If a company is subject to [the base erosion anti-abuse tax], then a dollar worth of credits they thought they were going to get are completely wiped out. It’s not like you get part of the dollar – you get none because it’s a 100 percent tax,” he said.