Nelson wants Finance Committee probe of $10 billion BP tax write-off

BP announced the financial plan Tuesday. Nelson, a member of the committee, calls for “an investigation into the federal tax treatment of the various costs and expenses incurred by BP as a result of the Deepwater Horizon oil spill.” The Finance panel oversees tax policy.

The letter says the probe should explore several questions, such as “How would BP be able to generate $10 billion in tax savings, when $12.2 billion of BP’s $32.2 billion charge on its financial results appears to be for nondeductible statutory penalties and fines?”  

Nelson also said the committee should review whether BP will be able to claim deductions for compensatory damages paid to the federal government and state governments, among other areas.