Dividend Tax Advocacy
Most energy utilities that deliver natural gas have a history of paying regular dividends to investors, many without interruption for decades or even longer. Lower tax rates on dividends significantly benefit natural gas utility shareholders and make energy utilities a more attractive investment. These lower tax rates provide access to affordable capital that will help utilities expand and rebuild their infrastructure, in turn helping to meet the nation’s energy needs and deliver on the promises of clean, affordable and domestic natural gas for our economy, environment and national security.entirely of natural gas components, so U.S. agricultural producers rely on an affordable, stable supply of natural gas.
On December 31, 2012, the United States Senate passed the American Taxpayer Relief Act in a vote of 89-8, moving it to the United States House of Representatives, where it passed with 257 votes on January 1, 2013. The American Taxpayer Relief Act preserves and make permanent 15 percent tax rates for dividends and capital gains for individuals earning up to $400,000 or couples earning up to $450,000. Dividends and capital gains for families who earn more than $450,000 will be taxed at 20 percent.
AGA and its members have continued to emphasize the importance of maintaining low tax rates on dividends and parity with capital gains, and supports the action taken in the American Taxpayer Relief Act.
For more information about divident tax policy, click here.