National Grid Expects $2 Billion Tax Credit After U.S. Tax Reform
February 02 2018 - 2:55AM
Dow Jones News
By Maryam Cockar
National Grid PLC (NG.LN) said Friday that it estimates it will
have a non-cash tax credit of around $2 billion in fiscal 2018
following tax reform in the U.S.
The electricity utility said the tax credit will be reflected as
an exceptional item and is expected to be returned to customers
over a period of 20 to 30 years.
The company said there will be no other material impact on
results for the year ending March 31. It said that overall U.S. tax
reform will be positive for its U.S. customers and economically
neutral for the company.
National Grid said the total yearly revenue increase from the
Niagara Mohawk Electric & Gas business and its gas entities in
Massachusetts and Rhode Island is estimated to reduce by $130
million in fiscal 2019. The company said the reduction in revenue
will be offset by a corresponding reduction in the tax charge.
U.S. tax reform includes a reduction of the corporate-tax rate
to 21% from 35% and limits on the deductibility of corporate
interest payments.
Write to Maryam Cockar at maryam.cockar@dowjones.com
(END) Dow Jones Newswires
February 02, 2018 02:40 ET (07:40 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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