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achievement and safety awards for tangible personal prop- excludable annual award amount per employee is $1,600,
erty. Employers cannot deduct awards of cash, coupons, gift but that could go a long way toward providing new ski
cards, stocks, bonds, or vacations—these are not considered gear to a deserving employee. Furthermore, businesses
tangible personal property. However, most businesses could must have a written plan (have your CPA set this up for
deduct the costs of such awards like fancy watches, pins, you). Length of service awards cannot be given during the
plaques, and so on. But the new tax law allows businesses to employee’s first five years of employment, and safety awards
reward employees with the right to select and receive tan- cannot be provided to more than 10 percent of employees
gible personal property from a limited arrange of items— during the same year. But considering the generous deduc-
like rewarding employees with an award to select something tions for such awards, creative ski areas may find that they
from the resort’s retail shop, or a manufacturer’s catalog (like can provide new ski gear and other related items to deserv-
a Patagonia catalog, the National Ski Patrol catalog, etc). ing employees as yet another retention perk, while maxi-
There are limits to these awards—the maximum mizing business tax write-offs.

A Mixed Bag: Tax Reform & Climate Change

Overall, proponents of sustainability and the environ- there will be even less demand for renewable tax
ment largely dodged a couple of bullets under the new credits, which means fewer investors in wind, solar,
tax bill, but renewable energy advocates remain fear- and other renewable projects. Large multinational
ful of the new law’s longer-term impacts on climate banks now have far less incentive to invest in renew-
change. Initially, the House of Representatives sought able energy projects so they can take advantage of the
to eliminate tax breaks for electric vehicles and wind renewable tax credits, which could dramatically slow
and solar production, while preserving billions in sub- renewable energy development in years to come.
sidies for fossil fuels. Thankfully, these renewable Perhaps the biggest loss to the environment and
energy tax credits were restored in the final bill. This climate change is the failure to use this once-in-a-gen-
includes a tax credit for $7,500 for electric vehicles, eration opportunity for tax reform to embrace
but phases out after a company sells 200,000 vehicles. a revenue-neutral carbon tax, the most promis-
Importantly, the TCJA retains the production tax ing, broad-based option available to combat climate
credit for wind industry and for solar developments; change. By harnessing the power of market forces, and
however, Congress failed to extend tax credits specif- placing a uniform tax on carbon emissions (right at
ically for renewable energy models based on geother- the source of the energy’s development), this would
mal, landfill gas, biomass, small hydro, and renewable incentivize society and businesses to shift to cleaner, No resort is quite like yours
marine wave technologies. Many expect that some- renewable energy, and in turn help reduce pollution—
time later this year there will be a push in Congress to without government mandates. Team up with us today.
extend these credits as well. The result would be more than $1 trillion in tax
More problematic is the inclusion of a new “stealth revenues over the next decade, returned to taxpay- Rob Andrews, Seattle, WA No insurance program delivers solutions quite like ours. We
tax” that could seriously limit renewable energy devel- ers at roughly $3,000 per household, by some esti- 360-787-9887
opment. The tax bill creates a new base erosion anti- mates, or through rebating payroll tax rebates. And, robert.andrews@safehold.com recognize that your business faces a unique set of risks every day.
abuse tax, or BEAT. The BEAT tax is intended to close importantly, such a carbon tax would prevent 12 billion Our sports and recreation teams can help you assess and minimize
loopholes for multinational companies (banks, insur- tons of carbon emissions from the US alone. (Notably, Bill Curtis, Lakewood, CO those risks so you can focus on running your business.
ance companies, etc.) that make payments to over- France, Japan, Ireland, Ukraine, and 35 other coun- 720-543-8066
seas affiliates. Many of these companies make deals to tries have already adopted carbon taxes for these rea- william.curtis@safehold.com We proactively consult with you to build the right insurance
invest in renewable energy developers in exchange for sons.) More and more conservatives—George Shultz, solutions — so you can feel confident that you have the
tax credits to provide these companies more tax sav- President Reagan’s secretary of state, and James Baker, Ryan Patrick, Portsmouth, NH right coverage in place to protect your business now and for
ings. These tax equity agreements finance as much as President George H.W. Bush’s secretary of state—have 603-570-5218
two-thirds of wind projects, and three-fourths of solar been advocating for a revenue-neutral carbon tax as a ryan.patrick@safehold.com the long term.
project. But this new BEAT tax limits how much multi- way to address climate change, without heavy federal
national companies can offset their taxes with renew- mandates. The 2017 Tax Cuts and Jobs Act was likely
able energy credits, thus making it harder to leverage the best chance to embrace a revenue-neutral carbon
these renewable credits. Furthermore, because the tax, but the broader policy implications still remain Products and services are offered through Safehold Special Risk, Inc., dba Safehold Special Risk & Insurance Services, Inc. in California. Coverage is provided by unaffiliated
overall corporate tax rate will be cut to 21 percent, extremely compelling. —DB insurance companies.
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24 | NSAA JOURNAL | SPRING 2018