With the passage of the new federal tax law questions about how it will affect different parts of the economy are emerging. In Ohio that is especially true for what the tax changes may mean to the energy industry.
Ian Goodman is President of the Goodman Group, financial consultants in the energy sector. He says because energy companies are set up in many different ways, the effects of tax code changes will likely vary in many ways across the industry; except for new provisions that may make writing off capital investments faster.
“In Ohio, there’s been spending on drilling and spending on the infrastructure needed to move the products of the drilling to market. If, in fact, the bill makes that more favorable through these provisions allowing quicker write offs, that will tend to encourage more rapid investment.”
Goodman, who has been following Ohio’s Utica Shale play since it began, says he expects it to continue developing for years to come regardless of the tax changes.