Duke Energy, Other Utilities Win With New Debt Interest Tax Rules (1)

New proposed rules for the 2017 tax overhaul’s limit on debt interest payment write-offs mark a win for the regulated utilities lobby, as well as for businesses that don’t quite meet the traditional definition of a public utility.

The tax law amended tax code Section 163(j) to place a cap on deductions of interest payments on loans and other debt instruments equal to 30 percent of adjusted taxable income.

Lawmakers exempted regulated utilities from the restriction, and the industry gave up the law’s coveted full expensing provision as a bargaining chip. Some energy giants with both ...