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.


Nov 23, 2015

Tax Extenders: Special Favors for Special Interests

Congress will soon take up a favorite piece of legislation among Washington special interests: the so-called tax extenders package. The tax extenders package is a Washington tradition of the worst kind…

Read More

Nov 23, 2015

Tax Extenders: An Ill-Conceived Washington Tradition

Congress will soon consider a package of tax extenders that mostly helps the wealthy and well-connected.  Freedom Partners President Marc Short and Senior Policy Adviser Andy Koenig explain why that’s…

Read More

Oct 09, 2015

There’s Nothing Free-Market About Corporate Welfare

Arlington, VA — On Friday morning, Rep. Stephen Fincher filed a discharge petition in order to bring an Export-Import Bank reauthorization bill to the House floor. The Ex-Im Bank provides billions…

Read More

Sep 18, 2015

State Corporate Tax Incentives “Reduce Tax Equity”

State tax incentives designed to primarily attract new businesses “can limit the state’s broader economic appeal across diversified business types,” according to a recent study by the Tax Foundation and KMPG…

Read More