Abstract

http://ssrn.com/abstract=2063815
 


 



The Monetization of Business Tax Credits


Thomas W. Giegerich


McDermott Will & Emery

May 21, 2012

Florida Tax Review, Vol. 12, No. 9, p. 629, 2012

Abstract:     
This Article examines the history of the development of federal incentive tax credits, from the enactment of the investment credit in 1962 to the cash grant in lieu of credits regime introduced as part of the American Recovery and Reinvestment Act of 2009, and methods for "monetizing" tax credits developed in the context of state tax credits as well as federal tax credits (and associated taxation issues). The principal thesis of the Article is that (1) the current array of federal business tax credits addressed in the Article are in the nature of subsidies rather than structural components of the computation of a "correct" tax; and (2) therefore constraining the monetization of these tax credits through the imposition of normative-based substantive requirements is inappropriate. As the Article states in conclusion, if the judgment is that tax expenditures of this kind play a useful role (i.e., they should not simply be repealed), then the articulation of the underlying goals and intended beneficiaries of current tax-based subsidies should be sharpened and our existing "delivery mechanisms" closely examined and possibly overhauled.

Number of Pages in PDF File: 117

Accepted Paper Series





Download This Paper

Date posted: May 22, 2012  

Suggested Citation

Giegerich, Thomas W., The Monetization of Business Tax Credits (May 21, 2012). Florida Tax Review, Vol. 12, No. 9, p. 629, 2012. Available at SSRN: http://ssrn.com/abstract=2063815

Contact Information

Thomas W. Giegerich (Contact Author)
McDermott Will & Emery ( email )
340 Madison Avenue
New York, NY 10173
United States
(212) 547-5335 (Phone)
(646) 390-3386 (Fax)
HOME PAGE: http://www.mwe.com
Feedback to SSRN


Paper statistics
Abstract Views: 915
Downloads: 217
Download Rank: 82,144

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.454 seconds