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Household and Senate negotiators determined that B does not should be reduced by 80% of renewable energy production credits, financial investment tax credits for Electrical power assets or lower-income housing credits or, if a lot less, eighty% on the gap in between A and B if B ended up decreased entirely for these tax credits. The eighty% number was essentially the most they felt they could manage.
The challenge for tax equity buyers is usually that getting into into tax equity bargains has the potential to make a gap by reducing B. Extra tax credits will minimize B.
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The base erosion tax demands an once-a-year calculation. Tax equity traders will not know until the top of annually whether or not they must shell out back tax credits on which they were counting that 12 months.
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