Aluminum smelter purchases of electricity or natural gas

From the 2024 DOR Tax Exemption Study

82.04.4482 - Aluminum smelter purchases of electricity or natural gas Description Businesses selling electricity, natural gas, or manufactured gas are exempt from B&O tax on sales made to an aluminum smelter when the contract requires the seller to pass the tax savings on to the buyer in the form of reduced power prices. The seller takes the exemption in the form of a tax credit. This tax incentive applies principally to sellers of brokered natural gas because most sellers of power are subject to public utility tax and not B&O. Purpose To support the aluminum industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would not increase revenue because currently no taxpayers exemption use it. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions No taxpayers currently use this credit. We expect no usage during the forecasted period of this study. Data Sources Department of Revenue, Excise tax data Additional Additional Information