National Grid Expects $2 Billion Tax Credit After U.S. Tax Reform
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 email@example.com
(END) Dow Jones Newswires
February 02, 2018 02:40 ET (07:40 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.