Industry Trend Analysis - Quick View: Senate-House Divergence On Tax Reform Adds To Power Sector Uncertainty - DEC 2017

The Latest: On November 9, the US Senate's Joint Committee on Taxation released a draft of the Senate tax reform bill; the mark-up session for the document in the Senate Committee on Finance (where it will be open to amendments) is scheduled for November 13. The Senate's bill follows the House of Representative's draft tax reform plan, which House Republicans unveiled on November 2.

The Senate bill left the status quo mostly unchanged in terms of existing tax regulations affecting US power and renewable energy industries. This compares with more significant potential impacts for these sectors under the bill proposed by House lawmakers.

In the table below we summarise the reforms in the House bill that are most relevant for the US power and renewables sectors, and we highlight how the Senate's draft bill differs on these issues. The table also provides a primer of the impact the reforms included in the House's plan would have on our industry forecasts, noting that the Senate's draft is mostly in line with our existing base-case scenario for the market.

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