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Deepwater Horizon Settlement Comes with $5.35 Billion Tax Windfall


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Deepwater Horizon Settlement Comes with $5.35 Billion Tax Windfall

WASHINGTON - Today’s announcement by the U.S. Department of Justice of a proposed $20.8 billion out-of-court settlement with BP to resolve charges related to the Gulf Oil spill allows the corporation to write off $15.3 billion of the total payment as an ordinary cost of doing business tax deduction. The majority of the settlement is comprised of tax deductible natural resource damages payments, restoration, and reimbursement to government, with just $5.5 billion explicitly labeled a non-tax-deductible Clean Water Act penalty.

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