Latest news with #foreignentities
Bloomberg
27-05-2025
- Business
- Bloomberg
Tax Bill Can End US Reliance on China Solar at a Transition Cost
A massive tax-and-spending bill passed by the House of Representatives last week marks the culmination of nearly two decades of efforts to decisively wean the US off cheap Chinese solar panels. The measure would clamp down on energy tax credits created or expanded by the 2022 Inflation Reduction Act by imposing a slew of new restrictions, including earlier expiration dates and mandates that projects be free of any connection to China and other so-called 'foreign entities of concern.' Relying on imported materials or components, or having ownership tied to China, could be enough to block project developers from receiving those credits.
Yahoo
22-05-2025
- Business
- Yahoo
Solar Stocks Plunge as Congress Targets Tax Credits
The text that passed the House on a 215-214, party-line vote early Thursday is even less favorable to clean energy interests than a previous draft that industry groups widely panned, UtilityDive reported. The bill terminates the 48E investment and 45Y production tax credits for non-nuclear clean energy projects placed in service after 2028, with no phaseout period. Projects must begin construction within 60 days of the bill's enactment — likely later this year — to be eligible for the credits. The version the House Ways and Means Committee released on May 12 stepped down the value of the 48E and 45Y credits over three years and did not include the imminent construction-start requirement, giving developers and asset owners more leeway to wait out lengthy waits for grid interconnection. Combined with even tighter restrictions on foreign involvement in U.S. clean energy projects, the truncated eligibility window leaves a 'near impossible' pathway for non-nuclear developers to qualify for the 48E and 45Y credits, Jeffries said. The foreign involvement restrictions apply to 'foreign entities of concern' like China, which controls much of the upstream supply chain for batteries, electric motors and other clean energy bill also eliminates the Inflation Reduction Act's tax credit transferability framework for most clean energy projects. Experts say transferability, which previously enjoyed bipartisan support, expands project financing options for small and midsize energy developers. Following an outcry from industry groups like the Nuclear Energy Institute, the House bill extends production and investment tax credit eligibility for advanced nuclear projects and power uprates of existing reactors that begin construction by 2028. It also extends a separate production credit for existing nuclear power plants through 2031 and preserves transferability for nuclear projects. The practical effect of the nuclear carveout is unclear. Projects like the planned reactor restarts at Constellation Energy's 835-MW Crane Clean Energy Center and Holtec International's 800-MW Palisades plant would likely qualify, but many greenfield projects are not expected to begin reactor construction until later this decade. For example, the Tennessee Valley Authority earlier this week began a more than two-year federal permitting process for a small modular reactor that it expects to begin building in late 2028. The biggest surprise in the latest version of the bill is what Jeffries called the 'intentional targeting' of the residential solar sector. The previous version of the bill quickly terminated the 25D tax credit for customer-owned residential solar installations while preserving it for installations leased by companies like Sunrun, the country's biggest third-party solar and energy storage leasing enterprise. 'This short-lived advantage to [residential solar leases] was seemingly corrected, with new text now 'leveling the playing field' by targeting all future residential solar originations, whether leased or owned,' Jeffries said. Shares of Sunrun fell about 40% in early Thursday trading; stocks of other solar companies also tumbled. Clean energy advocates and trade groups said the bill would devastate an industry driving the United States' manufacturing boom while increasing customers' utility bills and threatening the stability of the electric grid. 'This unworkable legislation is willfully ignorant of the fact that deploying solar and storage is the only way the U.S. power grid can meet the demand of American consumers, businesses and innovation,' the Solar Energy Industries Association said in a statement. The head of Advanced Energy United, another clean energy trade group, called the legislation a 'meat cleaver' in a statement noting that solar, wind, storage and other 'advanced energy' added 50 GW to the U.S. grid in 2024 and produced about $400 billion in domestic revenues. The House bill 'abruptly dismantles bipartisan, long-standing tax policy that has catalyzed billions in private investment for affordable, reliable energy while sparking a rebirth of manufacturing across America,' AEU President and CEO Heather O'Neill said. 'If enacted as written, this bill will weaken our power system and send shockwaves throughout the U.S. economy by raising electricity prices, killing tens of thousands of jobs and ceding energy dominance to China.' In a report released before the House bill passed, the American Clean Energy Association identified more than 800 manufacturing facilities involved in the U.S. clean energy supply chain. Seventy-three percent of those are located in 'Republican states,' it said. By More Top Reads From this article on Sign in to access your portfolio
Reuters
22-05-2025
- Business
- Reuters
House budget bill effectively kills US clean energy boom
WASHINGTON, May 22 (Reuters) - The House budget bill that narrowly passed in an early morning vote on Thursday would effectively put the brakes on a clean energy production boom in the United States spurred by tax credits enacted in 2022. The bill to carry out President Donald Trump's "one big beautiful bill" plan that would further his tax cuts and boost spending on the military and border enforcement would kill Inflation Reduction Act tax credits for clean energy years earlier than initially planned in an earlier draft, rendering them unusable for most projects. The changes made from the House tax-writing committee's proposal last week would advance by three years an end-date for the use of technology-neutral clean electricity tax credits for wind, solar and battery storage projects to 2028 and require projects to begin construction within 60 days of the final bill's passage, according to a bill summary. The House bill also eliminates the "transferability" of tax credits that enabled developers to sell their tax credits and use the funds to finance their projects' construction, a feature that made it easier to get projects up and running except for some nuclear energy projects. It also strengthened restrictions using tax credits for any project associated with 'foreign entities of concern,' which includes companies, subsidiaries and materials linked to China. China dominates all aspects of the clean energy supply chain and the restrictions effectively kill most projects, which rely on many components sourced from there. The budget proposal passed with the support of over two dozen Republican representatives who had urged House leaders to preserve key IRA tax credit provisions because their districts have benefited from clean energy and manufacturing investments. Advocates for the clean energy industry blasted the bill on Thursday, saying it will destroy billions in investments around the country and complaining that House leadership had initially promised to carefully reform the credits, not kill them. "If enacted as written, this bill will weaken our power system and send shockwaves throughout the U.S. economy by raising electricity prices, killing tens of thousands of jobs, and ceding energy dominance to China," said Heather O'Neill, president of clean energy lobby group Advanced Energy United. "This isn't a scalpel, it's a meat cleaver, and it will hurt us all." The American Petroleum Institute praised the bill for "preserving competitive tax policies" as well as opening up more oil lease sales and eliminating Biden administration policies such as its fee on methane emissions for the oil and gas industry. Analysts at JP Morgan described the IRA tax credit changes as "unfavorable" in an analysis, and said the bill contained "significant negative changes" from last week's proposal that it hopes the Senate can reverse. Energy analysts at the Rhodium Group said its preliminary review of the bill found the changes amount "to the impact of a full repeal of the energy tax credits" and could raise household energy costs by 7%. Clean energy stocks took a hit on Thursday. Sunrun (RUN.O), opens new tab shares fell as much as 33%, Complete Solaria (SPWR.O), opens new tab fell nearly 22% while Enphase Energy, Maxeon Solar and SolarEdge Technologies dipped between 10% and 15.6%. Shares of JinkoSolar fell 2.3%, while First Solar and Canadian Solar dropped 6.5% and 10%, respectively.
Economy ME
20-05-2025
- Business
- Economy ME
UAE expands corporate tax exemptions to include government-owned foreign entities
The UAE's Ministry of Finance announced today the issuance of Cabinet Decision No. (55) of 2025 on exempting certain persons from corporate tax for the purposes of Federal Decree-Law No. (47) of 2022 on the taxation of corporations and businesses. The decision expands the scope of the corporate tax exemption to include foreign entities that are wholly owned by certain exempted entities such as government entities, government-controlled entities, qualifying investment funds and public pension or social security funds, subject to meeting the relevant conditions. Prior to the latest decision, the corporate tax exemption was limited to entities incorporated within the UAE. Foreign entities, even if wholly owned by certain exempt entities, or even if they operated through branches in the UAE, were not eligible for exemption. The extension of the exemption to include such incorporated foreign entities, provided their activities meet the relevant conditions, aims to ensure equal tax treatment between local and foreign entities owned by certain exempt entities. It also reinforces the UAE's position as an attractive destination for holding companies and reflects the country's commitment to fostering a fair and competitive tax environment in line with international best practices. Read: UAE to offer $10.89 billion in financing solutions for industrial companies over 5 years, says Al Jaber Earlier this month, the UAE's Federal Tax Authority announced its implementation of a UAE Cabinet Decision to exempt certain corporate taxpayers from administrative penalties due to the late submission of registration applications, within the specified deadline. To qualify for the waiver of the penalty, the taxable person must submit their Tax Return within a period not exceeding seven months from the end of their first Tax Period, instead of the usual nine months.
Zawya
20-05-2025
- Business
- Zawya
UAE: Ministry of Finance announces issuance of Cabinet Decision expanding scope of Corporate Tax Exemption
The Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (55) of 2025 on Exempting Certain Persons from Corporate Tax for the purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. The decision expands the scope of the corporate tax exemption to include foreign entities that are wholly owned by certain exempted entities —such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds, subject to meeting the relevant conditions. Prior to the issuance of Cabinet Decision No. (55) of 2025, the corporate tax exemption was limited to entities incorporated within the UAE. Foreign entities, even if wholly owned by certain exempt entities (such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds), or even if they operated through branches in the UAE, were not eligible for exemption. The extension of the exemption to include such incorporated foreign entities—provided their activities meet the relevant conditions—aims to ensure equal tax treatment between local and foreign entities owned by certain exempt entities. It also reinforces the UAE's position as an attractive destination for holding companies and reflects the country's commitment to fostering a fair and competitive tax environment in line with international best practices.
