Global Minimum Tax Could Eat Up U.S. Green Subsidies, Say Companies
Tax attorney Joshua Odintz spoke with Financial Times about the potential impact of global minimum tax rules on Biden administration's clean energy tax credits for companies investing in green technologies, which may result in a transfer of US tax dollars to foreign governments. Companies are seeking guidance on the interaction between the Organization for Economic Co-operation and Development (OECD) rules and the types of tax credits included in the IRA, while the U.S. Treasury has stated that some credits will be protected under existing or recently released OECD guidance. Mr. Odintz said there was an “open question” over how the tax credits would be viewed by the global minimum tax guidance, meaning some companies receiving them could be seen as paying less than 15 per cent.
"Today, we just don’t know how all the IRA tax credits will be treated," he said.
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