U.S. Congress Investigates Multibillion-dollar ‘Clean Coal’ Tax Credit
In March the U.S. Congress reportedly launched an investigation into the “Clean Coal” Tax Credit, a multibillion-dollar subsidy for chemically treated coal that is meant to reduce smokestack pollution, after evidence came to light that power plants using the fuel produced more smog not less.
According to an article from Reuters, the outcome of the probe could decide whether the subsidy, which generates at least $1 billion a year for U.S. corporations, will renew at the end of this year.
Three U.S. Democratic senators reportedly called for the investigation after learning through a Reuters Special Report series in December 2018 that many power plants burning the fuel, actually pumped out more pollution than previously, according to the article.
Another source, independent nonprofit Resources for the Future reportedly confirmed the Reuters report, concluding that power plants using refined coal were not cutting mercury, nitrogen oxide and sulfur dioxide pollution to levels required by the tax credit program, according to the article.
Numerous American corporations have taken advantage of billions of dollars in benefits from investing in refined coal operations including the following: Arthur J. Gallagher & Co, DTE Energy (NYSE:DTE) Co, Fidelity Investments, Goldman Sachs Group Inc (NYSE:GS), JPMorgan Chase & Co (NYSE:JPM) Inc, Mylan (NASDAQ:VTRS) NV and Waste Management Inc (NYSE:WM), according to Reuters.
Further, the Internal Revenue Service, which oversees the tax credit program, purportedly allows the companies to qualify by testing relatively small amounts of refined coal in a laboratory once a year, instead of real-world emissions measurements at power plants, according to the article. This information is all publicly available and provided to you by The White Law Group.
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Last modified: August 6, 2021