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On Tuesday, ExxonMobil announced it would invest US $ 10 billion in US infrastructure as part of the implementation of the Golden Pbad liquefied natural gas (LNG) plant at Sabine Pbad. According to Exxon Mobil, "construction will begin in the first quarter of 2019 and installation is expected to begin in 2024".
Darren Woods, President and Chief Executive Officer of Exxon Mobil Corporation, said, "Golden Pbad will provide an increased, reliable and long-term supply of liquefied natural gas to global gas markets, stimulate local growth and create jobs. The vast experience of ExxonMobil and Qatar Petroleum provides the expertise, resources and financial strength necessary to build and operate an integrated liquefaction and export facility in the United States. "
The statement of Exxon Mobil reads as follows:
The liquefaction project of more than $ 10 billion will produce about 16 million tonnes of LNG per year. It is expected that it creates about 9,000 jobs over the five years of construction and over 200 permanent jobs in operation. Preliminary estimates from an independent study indicate that the project could generate economic gains of up to US $ 31 billion and direct tax revenues of more than US $ 4.6 billion over the life of the project.
Woods acknowledged last January that the tax reform law pbaded by President Trump and the GOP Congress had boosted Exxon Mobil's investments. He said, "At ExxonMobil, we plan to invest more than $ 50 billion over five years to expand our operations in the United States. These investments are based on the unique strengths of our society and are reinforced by the recently adopted historic tax reform. "
Exxon Mobil plans to invest more than $ 50 billion over the next five years in the Growing the Gulf initiative, which is expected to create approximately 45,000 jobs.
The National Association of Manufacturers (NAM) commented, "At a time when the existing energy infrastructure of the United States on the Gulf Coast is already being severely challenged by increased production, we can not underestimate the importance of this type of investment. The project will also allow US manufacturers to compete globally, provide a reliable, long-term supply of LNG, make the United States a world leader in power generation, and bring the United States closer to home. their energy independence. "
The effect of the corporate tax reduction was explained in March 2018 by GT Reilly & Co:
For taxation years beginning on January 1, 2018 or later, the corporate tax rate was simplified at a lump-sum corporate tax rate of 21%. This removes the old approach to the multi-tier corporate tax rate structure from 15% to 34% for corporations with sales of $ 335,000 and 34% to 35% above $ 335,000. Companies with non-calendar tax years will have a combined tax rate for the first year. For example, companies whose balance sheet ends on March 31 will have nine months at the old rate and three months at the new rate of 21% … Before the TCJA, the minimum corporate replacement tax (AMT) was 20%, but corporations were exempt if they had an average annual income of less than $ 7.5 million. As of 2018, the new law repeals AMT. For companies that paid AMT in previous years, an AMT credit was permitted under the previous law. The new law allows companies to fully utilize their AMT credit carryforwards, which credit can be refundable.
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