[Congressional Record Volume 169, Number 70 (Wednesday, April 26, 2023)] [House] [Pages H1979-H2039] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Date: 2023-04-26
Chamber: HOUSE
Mr. SMITH : we have heard a lot of comments just recently about tax provisions that helped the wealthy, the well- off, and the well-connected. Let's point out the Democrats' tax policies that we are ripping out from the roots are helping the wealthy, the well-off, and the well-connected. Mr. Speaker, I include in the Record analyses from the Joint Committee on Taxation, showing that big corporations with more than $1 billion in sales receive over 90 percent of all special interest electricity subsidies, and that financial institutions receive three times more benefits from these tax credits than any other industry where the wealthy, the well-off, and the well-connected benefit.  Congress of the United States  Joint Committee on Taxation,  Washington, DC, March 31, 2023. From: Robert Harvey. Subject: Distribution Data. This memorandum is in response to your request of March 28, 2023, for data on the distribution of claims for certain energy credits by the gross receipts of the taxpayer. Below we report the tentative claims for credit under Code section 45, the credit for electricity produced from certain renewable resources, and the tentative claims for credit under section 48, the energy investment credit, by C corporations for the 2019 tax year and 2020 tax year. The amounts reported are the tentative claims for credit before any limitation that the taxpayer might face and before any audit adjustment that might occur. For each of section 45 and section 48 we report the dollars of credit claimed categorized by gross receipts reported on line 1c of Form 1120, U.S. Corporation Income Tax Return.  TENTATIVE SECTION 45 CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES [Tax years 2019 and 2020, millions of dollars] ---------------------------------------------------------------------------------------------------------------- 2019                      2020 --------------------------------------------------- Gross Receipts Category                     Amount of    Percentage   Amount of    Percentage Credit       Share        Credit       Share ---------------------------------------------------------------------------------------------------------------- Less than $1 billion........................................          349          5.5          231          3.1 $1 billion-$25 billion......................................        2,538         40.2        2,560         34.6 More than $25 billion.......................................        3,432         54.3        4,619         62.3 --------------------------------------------------- Total...................................................        6,319        100.0        7,409        100.0 ----------------------------------------------------------------------------------------------------------------  TENTATIVE SECTION 48 ENERGY CREDIT [Tax years 2019 and 2020, millions of dollars] ---------------------------------------------------------------------------------------------------------------- 2019                      2020 --------------------------------------------------- Gross Receipts Category                     Amount of    Percentage   Amount of    Percentage Credit       Share        Credit       Share ---------------------------------------------------------------------------------------------------------------- Less than $1 billion........................................          571         10.3          558          7.9 $1 billion-$25 billion......................................        2,731         49.4        2,740         38.9 More than $25 billion.......................................        2,222         40.2        3,748         53.2 --------------------------------------------------- Total...................................................        5,524        100.0        7,047        100.0 ---------------------------------------------------------------------------------------------------------------- Note: Details may not sum to totals due to rounding.  Congress of the United States,  Joint Committee on Taxation,  Washington, DC, March 31, 2023. From: Robert Harvey. Subject: Tentative Energy Credits by Industry. This memorandum is in response to your request for data on claims for certain energy credits by industry, including credits claimed by management companies. Below we report the tentative claims for credit under Code section 45, the credit for electricity produced from certain renewable resources, and the tentative claims for credit under section 48, the energy investment credit, by C corporations for the 2019 and 2020 tax years. The amounts reported are the tentative claims for credit before any limitation that the taxpayer might face and before any audit adjustment that might occur. For each of section 45 and section 48 we report the dollars of credit claimed by industry using the North American Industrial Classification System (``NAICS'') code level. Presenting these data at a finer level of detail potentially would create concerns of disclosure of information specific to taxpayers. For example, for section 45 we removed 2020 data for the wholesale and retail trade industry as the sample size became too limited.  TENTATIVE SECTION 45 CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES [Millions of dollars] ------------------------------------------------------------------------ NAICS Code                   2018       2019       2020 ------------------------------------------------------------------------ 22 Utilities...........................      1,138        989      1,263 221100 Electric Power Generation,          571        460        578 Transmission and Distribution..... All other utilities................        567        529        684 31 Manufacturing.......................        515        266        188 41 Wholesale and Retail Trade..........        760        990         na 52 Finance and Insurance...............        943        877        871 524 Insurance......................        461        407        420 All other finance and insurance....        482        469        451 55 Management of Companies (Holding          1,909      2,880      3,385 Companies)............................ 551111 Bank Holding Companies......      1,898      2,839      3,354 551112 Other Holding Companies.....         11         41         31 All Other Industries...................        317        318      1,704 -------------------------------- Total..........................      5,581      6,319      7,410 ------------------------------------------------------------------------  TENTATIVE SECTION 48 ENERGY CREDIT [Millions of dollars] ------------------------------------------------------------------------ NAICS Code                   2018       2019       2020 ------------------------------------------------------------------------ 11 Agriculture, Forestry, Fishing, and          13         10         na Hunting............................... 22 Utilities...........................      1,127      1,118      1,191 221100 Electric Power Generation,          999        906      1,063 Transmission and Distribution..... All other utilities................        128        212        128 23 Construction........................         36         67         39 31 Manufacturing.......................        342        245        247 42 Wholesale Trade.....................         81        175        147 44 Retail Trade........................        271        299        547 52 Finance and Insurance...............        658        657      1,372 522110 Commercial Banking..........        120         19        202 522120 Savings Institutions, Credit         31         54         51 Unions............................ 524 Insurance......................        403        389        539 All other finance and insurance....        104        194        581 53 Real Estate and Rental Leasing......         31         17         20 55 Management of Companies (Holding          2,231      2,749      3,169 Companies)............................ 551111 Bank Holding Companies......      2,216      2,729      3,144 551112 Other Holding Companies.....         15         20         25 All Other Industries...................        102        187        316 -------------------------------- Total..........................      4,891      5,524      7,047 ------------------------------------------------------------------------  We note this analysis is based on income tax returns filed by C corporations where taxpayers report the industry in which they are primarily engaged, identifying the industry by the code numbers established under the NAICS. This is self- reported, and the Internal Revenue Service does not necessarily verify the accuracy of the classification stated by the taxpayer.