Energy Tax Incentives and the Alternative Minimum Tax

31 Pages Posted: 22 Jun 2008 Last revised: 13 Nov 2014

See all articles by Curtis Carlson

Curtis Carlson

U.S. Department of the Treasury, Office of Tax Analysis (OTA)

Gilbert E. Metcalf

Tufts University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: June 2008

Abstract

We take a first look at limitations on the use of energy-related tax credits contained in the General Business Credit (GBC) due to limitations within the regular corporate income tax as well as the AMT. Between 2000 and 2005, firms were unable to use all energy-related tax credits due to GBC limitations in the regular tax. The AMT has a smaller but still pronounced impact on the ability of firms to use these credits. Finally, we provide some illustrative calculations to demonstrate how the AMT can lead to very different levelized costs of producing electricity from a wind power project.

Suggested Citation

Carlson, Curtis and Metcalf, Gilbert E., Energy Tax Incentives and the Alternative Minimum Tax (June 2008). NBER Working Paper No. w14110. Available at SSRN: https://ssrn.com/abstract=1149356

Curtis Carlson

U.S. Department of the Treasury, Office of Tax Analysis (OTA) ( email )

1500 Pennsylvania Ave. NW
Washington, DC 20220
United States

Gilbert E. Metcalf (Contact Author)

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States
617-627-3685 (Phone)
617-627-3917 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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