Your Subsidy for Travis Kelce’s Hollywood Debut Explained
TL/DR –
Travis Kelce, a Kansas City Chiefs tight end, is benefiting from a provision in the Inflation Reduction Act that allows the transfer of tax credits. This provision allows those with substantial investments in green energy projects, which are eligible for generous tax credits under the act, to sell these credits to other entities that still owe taxes, thereby nullifying their tax liability. Although it is not clear if Kelce is a major investor in green energy, his debut movie is financed mostly by such tax credits sold by investor Mike Field.
Travis Kelce, Kansas City Chiefs Star, Benefits from Tax Loopholes
Living the high life as a three-time Super Bowl winner, Kansas City Chiefs tight end Travis Kelce is now getting taxpayers to foot part of the bill for his Hollywood debut. Credit for this goes to none other than President Joe Biden.
The Democrats’ Inflation Reduction Act includes generous tax credits for green energy projects and, importantly, makes them “transferable”.
For instance, if an individual named Mike invested heavily in green energy projects, the expansive tax credits from these initiatives might surpass his federal income tax liability. Companies or affluent investors with tax liabilities from other income sources can potentially buy these credits.
The Act allows Mike to sell his tax credits to interested parties, thus reducing their tax liabilities. This implies that a corporate giant like Exxon Mobil, which may owe $5 billion in taxes, could buy $5 billion in tax credits for $4 billion, effectively neutralizing their tax liability.
In 2022, over $9 billion was exchanged via the transferable tax credits provisioned by the Inflation Reduction Act.
While it’s unclear if Kelce is a major green energy investor, the co-founder of the production company for his debut movie is reported to be one, according to Variety. Kelce is the executive producer of My Dead Friend Zoe, starring Natalie Morales, Ed Harris, and Morgan Freeman, almost entirely funded by Inflation Reduction Act tax credits sold by investor Mike Field.
As Kelce transitions to Hollywood, remember that the next time Democrats, including Biden, complain about wealthy corporations and investors not paying enough taxes, it’s their legislation that made avoiding the taxman easier.
—
Read More US Economic News