BP will take $9.9 billion tax credit
In case you were wondering how BP will find the cash to put into its oil gusher escrow fund (assuming BP ever does actually put cash into it), you need not worry. Marketwatch explains that BP will take a $32 billion charge against earnings, due in part to the oil spill--which means it will get a $9.9 billion tax credit.
Nice round number, that. Wonder how BP came up with it. But it is a bit reminiscent of retail prices that always end in 99 cents, rather than rounding up to the next digit, which always looks worse.
"We have followed the IRS regulations as they're currently written," outgoing BP Chief Executive Tony Hayward said in a conference call.
Meanwhile, in case you were worried about BP investors, such as Wisconsin Republican Senate candidate Ron Johnson, you also can rest assured. BP is expected to report surging profits, and its stock has been rising in anticipation.