David Burton Talks Tax Credits with Metropolitan Corporate Counsel

The Metropolitan Corporate Counsel has interviewed Akin Gump tax partner David Burton for its March issue on the topic of tax credits.  As part of his tax practice, Burton focuses on project finance and energy transactions.

Among the topics covered:

  • The importance of Sen. Baucus’ energy tax proposal: “The great thing about the Proposal is that it says your tax credit is based on how clean your energy is versus a neutral standard. Therefore, if you develop a new widget that produces cleaner energy, you get a tax credit for this even if that widget does not fit a definition that is currently in the Internal Revenue Code.”
  • The Master Limited Partnership Parity Act: “The MLP Parity Act says, okay, if we are giving fossil fuel this nice one level of taxation tax break, we should also give it to renewable energy. So, the MLP Parity Act extends those rules to include renewable energy. It would allow you to form a publicly traded company, raise capital from retail investors and operate a renewable energy business and qualify for this benefit.”
  • The outlook for tax reform proposals post-Baucus: “Senator Wyden is [Baucus’] successor. Wyden appears to support tax reform, but also appears to be taking the pragmatic approach of prioritizing the passage of the extenders ahead of tax reform. I agree with Wyden's prioritization, as tax reform is quite difficult to accomplish, and passage of the extenders would support American job creation, which recent economic reports suggest is lagging.”

To read the full article, please click here.