SCOTUS Has Tough Questions For Moores
SCOTUS is Moore-skeptical. The High Court questioned the attorney representing Charles and Kathleen Moore on the distinctions the lawyer attempted to make between the Tax Cuts and Jobs Act’s (TCJA’s) repatriation tax and other taxes that have long been part of the Internal Revenue Code. The Moores argue that in their case, the temporary repatriation tax established with the TCJA was an unconstitutional tax on property. In its questioning of both sides, the court seemed to lean toward a narrow ruling that favors the US, but the nation will wait for a decision in June.
How will hydrogen tax credits fare? Bloomberg reports on a leaked Treasury draft of rules for hydrogen tax credits established through the Inflation Reduction Act. The draft reveals measures that would require hydrogen-production operations to be powered by wind, solar or other clean-power projects and built within the last three years to qualify for a $3-per-kilogram credit. Advocates for hydrogen fuel warn that narrower rules might slow the industry’s growth before it gets off the ground.
Brazil challenges EU’s carbon border tax on imported goods at COP28. PoliticoPro reports that Brazil plans to raise its concerns over the European Union’s (EU) new carbon border tax, which will impose a tax on imports similar to the carbon tax levied on domestic activities. Brazil calls the “unilateral carbon border taxes” discriminatory. The tax is designed to protect EU companies price against unfair competition with countries that have no or low carbon prices, while also encouraging overseas adoption of cleaner alternatives.
Cincinnati says General Electric fell short on promises related to a tax credit deal. The city of Cincinnati sent GE a notice of default in June and entered negotiations with the corporation to resolve the issue. GE planned to employ 1,800 people in a downtown building with a payroll of $140 million, in exchange for $15 million in tax breaks. In late July, Cincinnati’s Tax Incentive Review Council reported GE created 954 jobs with $111.8 million in payroll. GE has not yet responded to questions about how much it received in tax benefits from the city, county and state, or its employment levels over its seven years of operation at the downtown location.
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