Tax Credits

Tax credits are special deductions that allow companies and individuals to lower their annual tax liabilities.

Such deductions are available to those who take a certain action or produce some particular product favored by Washington politicians or bureaucrats. Often, these credits give favored companies and industries unfair advantages over their competitors.

The Wind Production Tax Credit is a prime example. Created in 1992 to encourage investment in the wind energy sector, it costs over $2 billion every year. Not only does this increase our deficit, but it also discourages efficiency in the wind industry by rewarding energy production regardless of demand.

In many cases, companies simply build wind energy that is less efficient than other sources simply because of the tax write off. Some investors even point out that wind energy doesn’t make economic sense without credits.

Nor is this the only example. Tax credits for activities such as energy production—including oil and gas—funnel tax dollars into well-connected, successful businesses that don’t need to be subsidized by hard-working taxpayers.

If a product or service is truly valuable, it will be able to succeed without the taxpayers’ help.

Mar 12, 2019

AFP, Freedom Partners Urge Opposition to Tax Extenders Ahead of House Ways and Means Subcommittee Hearing

Arlington, VA – Freedom Partners Chamber of Commerce and Americans for Prosperity (AFP) urged House lawmakers today to oppose special-interest giveaways in the form of tax extenders ahead of a hearing Tuesday…

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Dec 07, 2018

Coalition to Congress: Put an End to Tax Extenders

Arlington, VA – Americans for Prosperity joined a coalition of organizations spanning the political spectrum that wants Congress to put an end to corporate welfare in the form of temporary tax extenders. The…

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Nov 14, 2018

Freedom Partners and AFP: Government Handouts Are the Wrong Approach

Arlington, VA – Following reports of hundreds of millions of dollars in corporate handouts to Amazon, Americans for Prosperity and Freedom Partners Chamber of Commerce issued a joint statement highlighting the negative impact…

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Nov 01, 2018

Lawmakers Look to Expand Electric Vehicle Subsidy, But Americans Want it Gone

Purchasing an electric vehicle (EV) in the United States comes with a tax credit. Buyers can file for the non-refundable credit with their tax return and get up to $7,500…

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