Renewable Energy Revolution

501(c)3

Looks like the only ones getting a tax subsidy from the Cape Wind project are the Alliance to Save Our Sound (ASS) and their aristocratic friends. You see, the Alliance is a tax-exempt charitable organization.  As such, all the monies left over after expenses are considered surpluses instead of profits. But more importantly, all donations to the corporation are tax deductible contributions.

Ironic isn't it?  While the gang at the Alliance was complaining that Jim Gordon was going to make his profits from federal tax subsidies, Energy Tax Credits, they themselves were being paid with federal tax dollars.

An anonymous contribution of  $850K to the Alliance in 2005 generated a tax savings for someone of over $250K. This happens to be what they pay Charles Vinick, Alliance CEO.

Paul Fireman contibuted $250K  and Mike Egan $150K to the Alliance last year. Together they saved about $125K  in tax payments to the US Treasury, about what they pay Susan Nickerson (Alliance COO). 

When Frank Wilkins contributed $350K to the Alliance, he didn't have to pay the IRS $1o0K in taxes, about the same as Audra Parker's (Alliance VP) salary. 

Bill Koch's $1.1M contribution's $300K tax dodge paid for all of the other Alliance staffers' salaries.

The Alliance's tax advantaged status was granted by the IRS on a provisional basis three years ago. They will get reviewed this year to see if they qualified for the their tax-exemption, i.e. performed charitable work that benefited the general public and warranted the government's tax forgiveness.

Wouldn't it be funny if the IRS review concluded that the Alliance did not meet the performance standards for charitable work, and they ask for their money back? In that case Koch, Fireman, Egan, Wilkens and all those anonymous givers would get a nasty tax bill. 

501(c)3 is the tax code designation that allowed the Alliance to Save our Sound (ASS) to confer about $2 million in tax breaks to their already incredibly rich friends. By the way, who wrote these tax laws anyway?

http://www.irs.gov/charities/charitable/index.html