Grant Thornton | 1 CPE | Energy tax update: Impact of Inflation Reduction Act, Section 174 planning, and M&A tax considerations
Energy companies can seize tax opportunities to enable the business if they are proactive in their planning. Properly analyzing these opportunities – including multiple energy tax credits, the new energy credit monetization guidelines, and other planning guidelines – given the possible repeal of Section 174 and debt restructuring transactions which have been common among energy companies – all have tax implications and could create an unforeseen cost or a strategic advantage. We will address important considerations for companies that are currently engaging in M&A or have future plans to engage in M&A. Our team of energy-focused tax professionals will share real-world insights on how we are helping energy clients navigate these areas:
- Energy credits: We will provide an overview and perspective on how companies are pursuing the monetization of existing and new energy tax credits available – Section 45, Section 48, Section 45Q and Section 48C. In addition, we will share details on complying with prevailing wage and apprenticeship rules to receive the full rate and documentation requirements and the transferability of these credits.
- Section 174 research and experimentation (R&E) expenses: We will share tax planning best practices for taxpayers around the capitalization and amortization of these expenses, which affects financial statements and tax returns, and where things stand with respect to the legislation aiming to repeal Section 174.
- M&A tax considerations: We will cover traps for the unwary around debt restructuring efforts done in connection with an M&A transaction or as part of the business lifecycle, which can create tax implications. We will address how all of the topics being covered on this webcast can impact companies engaging in an acquisition or a disposition process.
This webcast is part of our 2023 Energy Symposium webcast series.