A Review of 2015 Energy Tax Developments

Technological advances and other changes in the energy industry have prompted a closer examination into energy taxation in recent years as the industry expands from a reliance on traditional fossil fuels to include renewable energy resources. Legislative and regulatory guidance has had to adapt to keep up with these changes as governments seek to find the optimal tax regime to maximize revenues while promoting economic growth.

A Review of 2015 Energy Tax Developments provides significant developments that occurred during 2015, beginning with a brief overview of the current state of the energy marketplace and continuing on to discuss the battle over federal energy tax credits and elimination of tax “preferences” for the fossil fuel sector, how states have adapted their severance tax regimes in reaction to market volatility that has negatively affected tax revenues and proposals to lift the crude oil export ban and impose federal and state “carbon taxes.” This report also gives an update on Internal Revenue Service proposed regulations for master limited partnership (MLP) income taxation and other regulatory guidance, touches on the role fuel taxes play in the energy tax discussion and finishes with a review of the status of the Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) project and the effect it could have on global operations.