Latest news with #taxincentives
New York Times
6 minutes ago
- Business
- New York Times
Candidate Trump Promised Oil Executives a Windfall. Now, They're Getting It.
During the presidential campaign, Donald J. Trump gathered oil executives at his Mar-a-Lago estate and promised them a powerful return on their investment if they raised $1 billion to help him retake the White House. The industry never ponied up quite that much, but nevertheless, six months into Mr. Trump's presidency, oil and gas companies are poised to reap multibillion-dollar windfalls from the administration's actions so far. A sweeping domestic policy bill that Mr. Trump signed into law this month includes about $18 billion in new and expanded tax incentives for the oil and gas industry, according to the Joint Committee on Taxation, which analyzes tax policy for Congress. It also includes billions of dollars in tax breaks that aren't specific to oil and gas but were top oil industry priorities as the law was being negotiated. It reduces the amount of money that energy companies must pay the federal government for the oil and gas they extract on public lands and waters, a change valued at about $6 billion, according to one analysis. The bill also delays penalties for oil companies that fail to reduce emissions of methane, a powerful greenhouse gas that leaks from wells, representing about $1.5 billion in benefits for the industry, the Congressional Budget Office found. 'The final bill was positive for us across all of our top priorities,' said Aaron Padilla, the vice president of corporate policy at the American Petroleum Institute, the oil industry's chief lobbying organization. Want all of The Times? Subscribe.
Jordan Times
6 days ago
- Business
- Jordan Times
'Class war': outsiders moving to Puerto Rico trigger displacement
CABO ROJO, Puerto Rico — Gloria Cuevas thought she would live forever in her pink, century-old house on Puerto Rico's west coast -- but then her landlord decided to transform the home into an Airbnb. Cuevas left her home -- now purple and split in two -- and her beloved city for another further south, forced out by the rising cost of living and an explosion of short-term rentals on the US Caribbean island territory. Puerto Rico -- long a draw for sun-worshipping tourists -- is also a hotspot for foreign investment and offers tax incentives to attract outsiders. "At first, I couldn't come back here," Cuevas, 68, told AFP, gazing at the home she once made her own. "It made me feel sad and angry at the same time." Cuevas's experience is becoming an all too familiar tale across the island, where signs promote mansions for sale, and the Airbnb logo is plastered on homes where locals once lived. Intensifying Puerto Rico's gentrification are laws that encourage primarily wealthy mainland Americans to move there in exchange for preferential tax treatment. The programme originally enacted in 2012 was meant to spur economic growth and attract investment on the island, an unincorporated territory under US control since 1898. Those relocating must acquire residency and buy property to keep the significant incentives -- but many Puerto Ricans as well as some US lawmakers say this is driving up housing prices and encouraging tax evasion. "Colonialism kills us, it suffocates us," Cuevas said. "It's a global theme. It's a class war." 'Unfair' - Ricki Rebeiro, 30, moved to San Juan more than a year ago, bringing his packaging and marketing business that services cannabis companies with him. He told AFP that basing his work in Puerto Rico saves his company millions of dollars annually, and that he pays zero personal income tax -- what amounts to the equivalent of "a whole second income" that he says he tries to reinvest locally. "I believe that the locals are probably upset that they're not reaping the same benefits of somebody like me," said the entrepreneur, whose family is based in Pennsylvania and Oklahoma. The system is "unfair," Rebeiro said, "but I also don't believe that I should be the one to blame for that. I didn't structure the programme". Puerto Ricans in recent years have slammed their government for what they say is a hyperfocus on outsiders at the expense of locals, as the rich -- including people like the famous content creator-turned-boxer Jake Paul -- move in. 'This is ours' In Cabo Rojo, a seaside city about an hour's drive south of Rincon on the island's western coast, some residents are taking the matter into their own hands. During a recent canvassing effort, a group of activists urged their neighbours to protest a massive development project called Esencia, which would transform more than 810 hectares of recreational land and more than three miles of beaches into a $2 billion luxury resort and residential development. Dafne Javier's family goes back generations in this area -- her great-grandfather was the last mayor in the municipality under Spanish occupation, and the first under US rule. The 77-year-old said the Esencia project would "totally change the landscape", creating a gated town within a town. Protesters say it would destroy the natural habitat of some endangered species, while exacerbating problems with potable water, electricity supply and trash pick-up. Project investors have called Puerto Rico "one of the most promising growth markets in the world" and vowed Esencia would create "thousands of jobs". But those jobs will be minimum wage, Javier predicted, and the wealthy newcomers "won't mix with us". Christopher Powers is married to a Puerto Rican with whom he has children, and has lived in Cabo Rojo for 20 years. "They have no idea what they're destroying, and if they do have an idea what they're destroying, then they should be ashamed," he told AFP of the developers. "Not only is it ecologically destructive, not only will it be an economic disaster for those of us who live here, but it's also against the sort of spirit or values of the Caborojinos." Cuevas is hopeful her story and others like it will crystallise for her fellow Puerto Ricans what they stand to lose. "We have to keep fighting. We have to educate our youth. Have you heard of Bad Bunny?" she said, referring to the Puerto Rican global superstar whose music and current residency in San Juan has amplified discussion of gentrification and cultural dilution, on the island and beyond. "This is ours," Cuevas said. "We're not going to leave."
Yahoo
23-07-2025
- Business
- Yahoo
As Analysts Sweeten on Hydrogen, Is Plug Power Stock a Buy?
Hydrogen stocks have come roaring back into the spotlight, driven by a renewed wave of optimism following the recent passage of U.S. President Donald Trump's 'One Big Beautiful Bill.' The sweeping legislation has injected fresh enthusiasm into the hydrogen industry by extending crucial tax incentives, removing controversial draft restrictions, and providing clarity for long-term investments in clean energy projects. That prompted a fresh round of bullish analyst sentiment that some investors believe could mark a turning point. At the center of this renewed enthusiasm is Plug Power (PLUG), a company that has long been viewed as a potential leader in the hydrogen economy. Still, significant questions linger about Plug's fundamentals. The company continues to grapple with deeply negative gross margins, substantial cash burn, and uncertainty around its long-term liquidity position. With PLUG shares rallying sharply in recent weeks, the question has come back into focus: Is Plug Power finally ready to deliver on its promise — or is this just another false dawn? More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate This Penny Stock Wants to Become the MicroStrategy of Dogecoin Option Volatility And Earnings Report For July 21 - 25 Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! In this article, we'll dig into why analysts have become more bullish on the hydrogen industry, examine Plug's financial position in greater depth, and assess whether the current optimism warrants buying PLUG stock today. About Plug Power Stock With a market cap of $2.02 billion, Plug Power (PLUG) is a notable player in the green hydrogen industry, specializing in hydrogen fuel cell technologies. The company is building a comprehensive green hydrogen ecosystem, spanning production, storage, delivery, and energy generation, to support its customers' business objectives and contribute to economy-wide decarbonization. Its offerings include the GenDrive fuel cell system for material handling vehicles such as forklifts, GenSure stationary fuel cells for grid support, and ProGen fuel cell engines designed for a range of applications. It also offers GenFuel, a comprehensive solution for hydrogen production, storage, and dispensing. Shares of the hydrogen fuel cell product solutions provider have surged 72.5% over the past month, fueled by favorable changes to Trump's sweeping tax and spending bill for the hydrogen industry, along with company-specific news like the recent extension of a strategic hydrogen supply deal with a major U.S.-based industrial gas firm. However, PLUG stock is still down 10% year-to-date. Analysts Sweeten on Hydrogen as Trump's 'One Big Beautiful Bill' Brings Long-Awaited Policy Clarity On July 7, Plug Power CEO Andy Marsh told Wall Street analysts during a conference call that the hydrogen fuel cell company stands to benefit significantly from U.S. President Donald Trump's One Big Beautiful Bill (OBBB) Act. The bill extends two key tax credits that Plug Power and its customers rely on, which were set to expire under the earlier version of the legislation. Marsh stated that the bill's passage, signed into law on July 4, represents 'one of the most meaningful policy wins for Plug and really for the entire hydrogen fuel cell sector in the last several years.' One of the tax incentives provides a 30% credit on all fuel cell purchases. Notably, the revised law eliminates the 'zero-emissions' requirement, foreign content restrictions, and prevailing wage or apprenticeship conditions, significantly broadening access to the credit. 'This clarity allows us to make long-term decisions with confidence. It allows our partners and customers to do the same,' Marsh said. Plug also applauded the extension of the hydrogen production tax credit. This tax credit provides producers up to $3 per kilogram to help make this fuel source competitive with traditional fuels. With that, Plug gained greater flexibility to align its plant construction timeline with actual market demand. 'We can build smart, we can build strategically,' Marsh said. With the passage of the OBBB Act, the 30% fuel cell tax credit has been extended through 2032, and the green hydrogen tax credit will now apply to projects initiated before 2028, rather than 2026, giving Plug more time to capitalize on these incentives as it expands its network of green hydrogen plants nationwide. 'We are in a much better place today than we were a year ago,' Marsh told analysts. Meanwhile, JPMorgan noted that the policy clarity provided by the OBBBA should eliminate a longstanding 'overhang for the broader hydrogen complex,' which had been hindered for years by shifting regulatory guidelines. The firm also pointed out that Plug anticipates receiving credits for its current production in Georgia and potentially in Louisiana, while also benefiting from 'more flexibility around when it deploys capital' instead of being pressured by earlier eligibility deadlines. In addition, the firm told investors in a research note that the latest policy changes could allow certain green hydrogen projects in the U.S. to reach a final investment decision that 'would have otherwise been canceled without the credit given significantly higher production costs than blue/grey hydrogen.' Another key point is that JPMorgan noted the outlook for Plug's previously delayed Department of Energy loan has improved, after the company had blamed the delay on tax credit uncertainty during JPMorgan's Energy Conference in late June. To recap, in early January, Plug secured a nearly $1.7 billion loan guarantee from the DOE to support six zero- and low-carbon hydrogen production projects, but the Trump administration has since placed the loan under review. In my previous articles on PLUG, I highlighted the importance of the loan, as it could allow the company to move forward with its plan to build a nationwide network of green hydrogen plants, positioning it to fully capitalize on the extended hydrogen production tax credit. Overall, JPMorgan sees the bill as a positive development for Plug but notes that the extent of unlocked demand and the company's ability to improve margins and reduce cash burn remain uncertain. The firm maintained its 'Neutral' rating on PLUG stock after the management's conference call with analysts. Other firms seem more optimistic about PLUG's outlook, with Roth Capital and H.C. Wainwright both reaffirming their 'Buy' ratings. Ball Now on Plug's Side As JPMorgan analysts pointed out, while the OBBBA offers some relief to Plug and the overall hydrogen industry, the company still faces challenges in its core operations, including deeply negative margins and massive cash burn. With that, let's take a closer look at the company's latest quarterly results and dive deeper into key points. In the first quarter of 2025, Plug's sales grew 11.1% year-over-year to $133.7 million, fueled by higher electrolyzer shipments, steady demand in material handling, and continued deployments across its cryogenic platform. However, the company continues to post deeply negative gross margins, largely due to the structure of its fuel contracts. In Q1, PLUG posted a gross margin loss of -55%. Still, this marked an improvement from -132% in the same quarter a year ago. We also recently received some positive news on the margins front. On July 9, Plug announced a new multi-year enhanced supply agreement with a major U.S.-based industrial gas company and longtime hydrogen partner. The agreement extends the existing strategic partnership between the companies through 2030, ensuring a stable hydrogen supply for Plug's expanding applications business while substantially lowering the cost structure and improving cash flows. During the Q1 earnings call, management said they aim to achieve break-even gross margins by year-end, so it will be interesting to see in the Q2 update whether that timeline has been moved up. Another key point that caught my attention is expenses. While everything looked great with research and development costs in Q1, thanks to the company's 2025 Restructuring Plan, the same cannot be said for SG&A expenses. They rose slightly year-over-year to $80.8 million, an uncomfortably high figure for a company grappling with negative gross margins and significant losses. As a result, Plug's net loss stood at $196.9 million, or $0.21 per share. Finally, Plug continues to burn a massive amount of cash, and its liquidity outlook beyond 2025 remains uncertain. The company ended Q1 with just $295.8 million in unrestricted cash but later secured a costly debt facility of up to $525 million from its existing lender, Yorkville Advisors. What I really don't like is the first-quarter cash burn of $152.1 million, especially given that management had already launched a $200 million cost-saving program. Looking ahead, management forecasts Q2 revenue to range between $140 million and $180 million. At the midpoint, Plug's first-half sales would come in just under $300 million, well below the over-$400 million estimate projected at the end of 2024. Analysts currently forecast Plug's FY25 revenue at $733.25 million, reflecting a modest 16.61% year-over-year increase, while its net loss is expected to narrow by 78.35% year-over-year to $0.58 per share. What Do Analysts Expect for PLUG Stock? Despite the recent wave of optimism surrounding the hydrogen industry, analysts haven't changed their view on Plug stock, which continues to carry a consensus 'Hold' rating — unchanged from one, two, and three months ago. Of the 23 analysts covering the stock, five rate it a 'Strong Buy,' 13 recommend holding, and the other five have issued a 'Strong Sell' rating. Still, PLUG's average price target of $4.08 implies massive upside potential of 116% from current levels. The Bottom Line on PLUG Stock Putting it all together, I currently view PLUG stock as a 'Hold.' The stock moved exactly as I expected in my previous article, reaching the $1.80–$2.00 range, where I believe the main price action will occur. The stock now faces a strong multi-year resistance level at $2.00, which I don't expect it to break through unless the company delivers some fundamental improvements. For this reason, I'll be closely watching the company's Q2 report, scheduled for early August, with a particular focus on improvements in margins and cash burn. On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
22-07-2025
- Business
- CNA
A look at renewed efforts to revive interest in China's Hengqin island
For years, China has poured billions into developing quieter cities to even out economic growth. Despite tax incentives and funding, not every venture has succeeded. Deborah Wong travelled to the southern Chinese island of Hengqin to find out how it can revive interest.
Daily Mail
19-07-2025
- Entertainment
- Daily Mail
Texas torn apart over A-listers' attempt to make it 'the new Hollywood' as bizarre rules directors must follow are revealed
In many ways deep red Texas could not be further from the liberal movie sets of Hollywood. But now a gaggle of A-listers and lawmakers believe the it is the perfect place to set up a film industry which could not only rival Tinseltown's, but topple it altogether. Matthew McConaughey, Woody Harrelson and Renée Zellweger are among the actors leading the charge. They have recently helped secure a bill that will inject $300 million into the Texas film industry over the next two years and provide tax incentives for the next decade. However the new law, which comes into effect on September 1, does contain some distinctly Texan stipulations when it comes to who can qualify for the cash. Officials plan to be far more selective about who gets taxpayer money than their Californian counterparts, with Governor Gregg Abbott given veto powers under the new law. But despite the strict parameters, the decision has been heavily criticized by conservatives in Texas, who described the bill as an 'abomination' and fear it will turn the Lone Star State into a new La La Land. Subsidy Rules Supporters of the new Texas law say they want to be as influential as Hollywood, but without the same liberal cultural values. As a result, they have created a series of hoops filmmakers must jump through if they want to secure any state cash. 'We are not trying to make Texas the next Hollywood - we don't like Hollywood. We want to export Texas values,' Lieutenant Governor Dan Patrick, one of the biggest proponents of the scheme, recently said in a campaign update. Patrick is a staunch conservative who despite his opposition to legal marijuana, gambling and abortion, wants to make Texas 'the film capital of the world'. He and other legislators have devised a system which will reward films with, 'export Texas values', according to Patrick. For projects that spend at least $1.5 million in Texas, the new law offers tiered grants worth 25 percent of that in-state spending. Films that are faith-based, shoot in historic sites or employ a percentage of crew who are Texas-based military veterans can get a grant as high as 31 percent. Additionally, the governor's office has broad powers in determining which projects do and do not get funding. If films are deemed to have content that is 'inappropriate,' has obscene content or portrays Texas negatively - they won't get a dime. Celebrity backing None of this would have been possible without the support of several towering figures in the entertainment industry. In January, Matthew McConaughey, Woody Harrelson, Renée Zellweger and several others appeared in a video that campaigned for Texas officials to bring increased film incentives so people can make movies in the state without breaking the bank. The four-minute video begins with Harrelson and McConaughey barreling down a highway in a sedan as they're deep in conversation about this very issue. 'You ever wonder if this industry of ours is just chasing its own tail?' Harrelson asks. 'No, I don't wonder. Restrictions, regulations, nickel and diming productions, political lectures,' McConaughey replies. The video had a surprising level of credibility, considering the fact that McConaughey, Harrelson, Zellweger and Dennis Quaid (who also appeared) were all born in Texas. McConaughey, whose social media feed focuses almost exclusively on Texas sports, attended a March hearing with state legislators and had the final word. 'If we pass this bill, we are immediately at the bargaining table for shooting more films and TV and commercials in our state,' he said while wearing a cowboy hat. 'That is money that's going to local Texas restaurants, hotels, coffee shops, dry cleaners, street rentals, home rentals ― even Woody's barber,' in reference to Harrelson, who was also in attendance. Two months after McConaughey's overture, the Senate voted 23-8 in favor of the bill and it became law by June. The Opposition But these restrictions weren't enough for the many conservatives who opposed the law when it was being debated over the last few months. Some were concerned that the bill would allow Texas to go down a path of unrighteousness, while others thought the subsidies were taxpayer theft. 'The Bible warns us of the consequences of the government wrongfully taking money from some and handing it out to others,' Texans for Fiscal Responsibility said in one of its papers against the bill. Republican State Rep. Brian Harrison has emerged as the main enemy of the bill, calling it an abomination. 'And shame on everybody who voted for it,' he has said. 'This is big government liberal redistributive socialism,' Harrison told the LA Times. 'The governor and lieutenant governor of the supposedly Republican-controlled state of Texas chose to keep property taxes billions of dollars higher so that you can subsidize a rich liberal Hollywood movie industry - how embarrassing.' He plans to introduce legislation at a special hearing later in July that would repeal the law. Exodus from California The bill deepens the growing rivalry between California and Texas, which has already poached several major companies once based in the Golden State, including Tesla and Hewlett-Packard. These businesses were largely lured by lower taxes and a business-friendly environment, both things the bill signed by Abbott seeks to address with the film industry specifically. It couldn't come at a worse time for California, a state that is already bleeding talent and expertise. When Hollywood writers and actors went on strike in 2023, California lost roughly 40,000 film and TV jobs that year alone, according to the Bureau of Labor Statistics. California also has to worry about the tax subsidies being offered in the other states, not just Texas, and even other nations. That's why in late June, California legislators doubled their own tax incentive ceiling to a staggering $750 million a year. While Texas isn't spending nearly as much tax money as California on movies and TV, experts believe that this could be the start of a real competition. 'Texas now has a program that is going to be competitive,' Fred Poston, the executive director of the Texas Media Production Alliance, told the Los Angeles Times. 'When you really take a close look at it, you realize this is a big deal. We have this new level of funding to start building more industry around it.' A Return to the Glory Days Proponents of the law feel that without the incentives, Texas is leaving tons of economic growth on the table. Texas, while not Hollywood, has been the filming location for many highly-celebrated pieces of media, including but not limited to the 1956 western 'Giant', the 1974 slasher film 'The Texas Chainsaw Massacre' and the high school football drama TV series 'Friday Night Lights.' By the early 2000s, nearby states became more attractive to film because of better incentives being offered to producers. 'Texas had been highly competitive, we had all of these ingredients,' Rebecca Campbell, CEO of the Austin Film Society, told the LA Times. 'Then all of a sudden, Texas stories were getting shot in New Mexico and Louisiana.' Texas introduced its first program for film incentives in 2007, earmarking $20 million for it. Because of how underfunded it became over the years, the producers of 'Fear the Walking Dead' decided to move production in 2021 from Austin to Georgia. Richard Linklater, a Houston-born director, filmed his 2024 romantic crime thriller 'Hit Man' starring Glen Powell in his hometown. But because there wasn't enough incentive funds, he had to move the operation to New Orleans. 'We're completely surrounded by states that have very active film incentive programs,' he said on the podcast 'Friends on Film.'
