David Burton Quoted on Likelihood of Tax Reform in New Congress
Akin Gump tax partner David Burton is quoted in the Recharge magazine article “2015 OUTLOOK: US wind at the mercy of politicians.”
The article addresses how the wind industry might fare amid the new Republican-led Congress and whether certain tax subsidies for the industry are likely to continue. One of those subsidies is the production tax credit (PTC), extended in late 2014 in a move described by the American Wind Energy Association, according to the article, as “essentially worthless in driving new projects.”
The article notes that the wind industry is also concerned about whether Congress will permit wind companies to become master limited partnerships, which would allow wind developers to tap new sources of cheaper capital and let individual retail investors purchase stakes in wind farms. Burton says he thinks any efforts at tax reform will come up short and “will not succeed. It’s too complicated and too controversial.” Instead, he predicts lawmakers will approve another one-year PTC extension toward the end of 2015.