The General Services Administration is now coming under scrutiny for offering government contractors a tax deduction in exchange for giving the agency 19 percent of the money from the tax break.
The agency is already under fire for the spending at a lavish employee conference in Las Vegas. The tax break involved making federal buildings more energy efficient. Section 179D of the Tax Code offers energy tax credits to building owners who install energy efficient lighting, heating and cooling systems.
The GSA told the
Lawmakers plan to investigate whether the agency broke the law and if other federal agencies are also offering tax breaks in exchange for a portion of the proceeds. On Thursday, House Ways and Means Subcommittee on Oversight Chairman Charles Boustany, Jr., R-La., sent a
“The action by the GSA raises a number of serious questions about whether this particular tax deduction is being abused,” Boustany said in a statement. “Requiring a cash payment in exchange for a tax deduction is a kickback, pure and simple. We must ensure that this tax deduction is being used for its intended purpose and not being sold to line some government slush fund. Given the wide range of abuse of taxpayer dollars being used for everything from fortune tellers to clowns to spaying pets, it is clear that strong and vigorous oversight is necessary to ensure that taxpayer dollars are being protected.”
The departments and agencies are being asked to provide information to Boustany’s subcommittee by May 18 on a range of areas including: copies of all letters sent by the government to contractors or other entities regarding the 179D deduction; the total amount of deductions a government entity has allocated, and a detailed breakdown of the contractors or other entities receiving allocations, including the amount of the deductions; information about whether the government entity requested or received a percentage of the deduction from the contractor or other entities to whom the deduction was allocated; and how the government entity used these funds, including information detailing the accounts the funds were deposited into and by whom.