Skip to main content

TAX TAKE: Off to Work We Go: Supply Chains Tax Team Details Taxpayer Submission Process

Tax Alert

As we discussed last week, House Ways and Means Republicans created a formal mechanism for the submission of written taxpayer comments to the newly created Tax Teams. An announcement last week by the Supply Chains Tax Team provides further detail into the submission process, instructional questions on the substance of submissions, and a form for taxpayer use.

The Supply Chains Tax Team, chaired by Representative Carol Miller (R-WV), has broad  jurisdiction to ensure the "tax system treats all sources of energy fairly, the corporate rate remains competitive, and long term investment is properly rewarded." However, last week's announcement is specifically targeted to providing a mechanism "for stakeholders to send comments on energy credits and incentives," noting a need to "better understand stakeholders' wants and needs when it comes to various energy and manufacturing credits as we prepare to debate expiring tax provisions in 2025." Nevertheless, the announcement will likely serve as the model for submissions to other Tax Teams as well.

The Supply Chains Tax Team confirms our earlier indication of confidential treatment, noting that submissions "will be kept private, but shared internally with Republican Members, Personal Office Staff, and Committee Staff of the Ways and Means Committee." It further elaborates:

There is no plan to turn these submissions into a public report. We are also not looking to be the ones making recommendations on what should be done with individual credits/incentives. This is purely an educational and information gathering exercise. The more specific information you can provide, the more helpful it will be to the Supply Chains Tax Team.

From a substantive perspective, the Supply Chains Tax Team form requests basic information, such as the applicable Internal Revenue Code (Code) section, geographic beneficiary, economic benefits (dollar amounts, jobs, investments, etc.), and explanation of the issue. Interestingly, it also asks whether the taxpayer is looking for a legislative or regulatory change. If legislative, the form asks what change to the Code is needed. If regulatory, the form asks the pointed question of whether the Biden administration is following congressional intent. The form also asks if the issue raised was created by the Inflation Reduction Act (IRA). The scope of these questions suggests that submissions may be tapped to develop Congressional Review Act disapproval resolutions or other regulatory challenges to IRA-related regulatory guidance. Taxpayers may want to consider this facet of the Supply Chains Tax Team submission process in considering and developing their submissions.

The Tax Team submission process is a welcome development for taxpayers interested in contributing to the 2025 tax reform debate. The Supply Chains Tax Team announcement underscores the need to monitor developments and determine how best to formulate submissions to House Republican taxwriters. #TaxTake

In the News

In Roll Call, Marc comments on the partisan approach of the Republican Tax Teams. "It's really hard for either Republicans or Democrats to start trying to negotiate out or have bipartisan negotiations on offsets when they just don't know kind of where the power is going to lie."

For the sixth consecutive year, Chambers & Partners ranked Miller & Chevalier as the only Band 1 firm in the Government Relations: Specialist Tax Firms category. Jorge, Marc, and Loren also each received individual lawyer rankings. 

The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.

This, and related communications, are protected by copyright laws and treaties. You may make a single copy for personal use. You may make copies for others, but not for commercial purposes. If you give a copy to anyone else, it must be in its original, unmodified form, and must include all attributions of authorship, copyright notices, and republication notices. Except as described above, it is unlawful to copy, republish, redistribute, and/or alter this presentation without prior written consent of the copyright holder.