The nation’s investor-owned electric companies strongly support policies that promote a healthy economy for all Americans. We support comprehensive tax reform because we believe that a simpler tax code, broader tax base, and lower tax rates will grow the economy and increase the competitiveness of the United States, support job creation in America, and benefit our customers.
We believe that tax reform legislation must support investments in America’s critical energy infrastructure and keep energy bills as affordable and predictable as possible for all Americans. And, we plan to work with Congress and the Administration to find tax reform solutions that help to keep the cost of capital as low as possible. This, in turn, will benefit customers and encourage much-needed investment in critical energy infrastructure.
There are five provisions of tax reform that we believe are essential to achieving the goals outlined above. These are maintaining the federal income tax deduction for interest expense, as well as the federal income tax deduction for state and local taxes; providing for the continuation of normalization, including addressing excess deferred taxes resulting from a reduction in the tax rate; and keeping dividend tax rates low and on par with capital gains.
Each of these provisions helps to keep the cost of capital low so electric companies can continue to invest in the infrastructure necessary to provide American homes and businesses with reliable and affordable electricity.
Failure to address these provisions would raise the cost of capital, which, in turn, could raise electricity prices for customers of all sizes.