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PG&E Gets $470 Million Tax Deduction For Fire Settlements

January 21, 2020

Via: Forbes

As bankrupt utility PG&E settles its fire liabilities, are taxes involved? You bet. A new regulatory filing says that PG&E’s $1.68 billion settlement agreement with California over wildfires could save the utility $470 million in taxes. Nearly all the wildfire recovery and prevention work included in the agreement should be deductible from both its state and federal taxes, PG&E said. The agreement covers Northern California’s 2017 and 2018 fires. Although tax deductions might rub consumers the wrong way, it is hardly surprising that PG&E’s $1.7 billion settlement could yield a tax break. Plainly, tax deductions make any legal settlement less painful, and they are standard fare for business. That’s hardly a new concept, nor is uneasiness about some of the rules.

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