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.


Apr 12, 2016

Statement on FAA Reauthorization Talks

Arlington, VA – Negotiations over a new FAA reauthorization collapsed today due to objections to energy tax giveaways attached to the bill, according to a report by POLITICO. Leadership now plans to pursue…

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Apr 11, 2016

Corporate Welfare in the FAA Reauthorization Bill

This week, the U.S. Senate is debating a bill to reauthorize the Federal Aviation Administration (FAA). Unfortunately for taxpayers, the bill is loaded up with pork —  a.k.a. unrelated goodies…

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Apr 06, 2016

Backroom Deal Could Cost Taxpayers Millions In FAA Bill

Arlington, VA – Lawmakers are now using a backroom deal made six months ago as an excuse to load-up an unrelated Federal Aviation Administration (FAA) Reauthorization bill, currently making its way through…

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Apr 05, 2016

Coalition Letter: Don’t Cram Unrelated, Expired Tax Carve-Outs into FAA

In December, Congress passed a $680 billion tax extender package that made many corporate tax carve-outs permanent. Even with this huge give away to well-connected businesses, more than two dozen…

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