BP Taking $10 Billion Tax Credit from Gulf Spill

leavingwt

BP takes a $32 billion write-off on the oil spill. Somehow, that doesn't seem right.

BP Taking $10 Billion Tax Credit from Gulf Spill

Credit is allowed under federal rules, company says in earnings report

BP PLC will reduce its contribution to U.S. coffers by roughly $10 billion due to a tax credit the company is claiming it incurred from the Gulf of Mexico oil spill.

The oil giant (NYSE:BP) said Tuesday that it is incurring a charge of $32.2 billion from the Deepwater Horizon disaster response, and as such, it is claiming a $9.9 billion taxation credit.

Asked in a conference call Tuesday about whether it has discussed the tax credit with President Barack Obama's administration, BP's outgoing chief executive, Tony Hayward said: "We have followed the IRS regulations as they're currently written."

. . .

http://www.marketwatch.com/story/bp-taking-10-billion-tax-credit-from-spill-2010-07-27?siteid=yhoof

Reminds me of Seinfeld. . .

http://www.youtube.com/watch?v=rCZRqH7sRyA

thetrueone

Sounds like BP is going to have a big write off this year on business expenses relating to the oil spill.

This unfortunately is how corporate taxation works in most modern industrialized nations including GB.

beksbks

bullshit

leavingwt

The Obama administration may end its ban on deepwater drilling "significantly in advance" of its Nov. 30 expiration date, the administration's top official in charge of drilling told reporters Tuesday.

http://www.washingtonpost.com/wp-dyn/content/article/2010/08/03/AR2010080305708.html

llbh

You can not have it both ways, when BP, or any other company make large profits, they pay a lot of tax, then when they have a lot expenses, as in the case of BP here, people moan about tax write offs.

David

What-A-Coincidence

The revolution starts when??? I got my glocks and loaded.

B-Rock

Who set up the fund?

leavingwt

BP may drill again in oil spill reservoir

http://content.usatoday.com/communities/greenhouse/post/2010/08/bp-oil-spill-gulf-1/1

skeeter1

If true, Congress should have moved to change the law.

I ain't worried about this. The IRS most likely has BP on its "large case" audit list (meaning year round, multi year audits all the time, every day, every transaction)) looked at. Their top agents are assigned each year to the large case, and these auditors literally live at BP's US and England headquarters.

Skeeter

BP Taking $10 Billion Tax Credit from Gulf Spill