Utilities closely watching FERC ADIT reporting requirements
Implications of 163(j) for utilities
Comment letters are in, and the waiting game has begun.
On November 15, 2018, FERC initiated RM19-5, a Notice of Proposed Rulemaking that addresses how electric transmission providers, natural gas utilities, and pipelines must reflect the accounting and reporting of excess deferred income taxes resulting from the Tax Cuts and Jobs Act of 2017. Comment letters were due by January 22, 2019.
Tax Reform and ADIT
On Monday, November 26, 2018, the Treasury Department published proposed regulations relating to section 163(j), as amended by the Tax Cuts and Jobs Act. For utilities with regulated operations (excepted trade or business) and non-regulated operations (non-excepted trade or business), the proposed regulations provide additional clarity regarding the applicability of the interest limitation on the consolidated group.
Dedicated to your craft.
The Tax Cuts and Jobs Act, signed into law on December 22, 2017, has placed a responsibility on companies to understand the various complexities within the law and to assess the accounting and financial reporting impacts on their organizations. For rate-regulated utilities, certain changes in tax law have put a spotlight on the interplay of rate-making and accounting activities. In particular, the reduction of the top corporate income tax rate from 35% to 21% has initiated a cascade of activities for rate-regulated utilities.
Independence and Individualism
Supported by your software.
Another quarter end close is in the books (quite literally). Finance, accounting, and tax professionals go through a set of shared experiences in those several critical days surrounding key accounting close windows and reporting deadlines.
As we fire up the grills and bring out the burgers and hot dogs, we also take time to remember those qualities that set the United States apart. Since that summer in 1776, independence has been a core tenet of the psyche of the American identity. But there is something more that sets this country apart: American individualism.