May 4, 2012
GSA Demanded 19% Kickbacks on Energy Efficiency Tax Deductions Claimed by Government Contractors
Charles Boustany, Jr. (R-LA), Chair of the Subcommittee on Oversight of the House Ways & Means Committee, sent a letter to 17 federal departments and agencies demanding information about possible kickbacks on any claimed § 179D Energy Efficient Commercial Buildings Deductions:
Documentation recently obtained by the Ways and Means Committee suggests that the General Services Administration (GSA) may be using the deduction to secure kickbacks from contractors by requiring the contractor to write checks payable to GSA for 19% of the value of the deduction.
Discussing the letter, Boustany commented, “The action by the GSA raises a number of serious questions about whether this particular tax deduction is being abused. Requiring a cash payment in exchange for a tax deduction is a kickback, pure and simple. We must ensure that this tax deduction is being used for its intended purpose and not being sold to line some government slush fund. Given the wide range of abuse of taxpayer dollars being used for everything from fortune tellers to clowns to spaying pets, it is clear that strong and vigorous oversight is necessary to ensure that taxpayer dollars are being protected.”
- Associated Press, GSA Offered Contractors Tax Breaks -- At a Price
- Wall Street Journal, GSA: Tax Troubles, Too?
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