ITCC Change Overview:
In December 2010, the Income Tax Component of Contribution (ITCC) was temporarily
reduced from 22% to 8% on payments SCE receives on or before December
31, 2011. This temporary reduction is now scheduled to end December 31,
2011. At that time, the ITCC tax factor will revert back to 22% effective January
1, 2012.
The outstanding invoice(s) with the 8% ITCC tax factor will only be honored if
SCE receives payment on or before December 31, 2011. Should SCE receive payment
after December 31, 2011, a new invoice will be generated with the 22%
ITCC tax factor which is effective January 1, 2012.
What this ITCC tax change means to you:
1. The new 22% ITCC tax factor will be incorporated into SCE construction billing
for all work orders priced on or after January 1, 2012. The 22% ITCC tax factor
will remain in effect through December 31, 2012. Existing outstanding invoices
are valid if paid by December 31, 2011. Invoices not paid in full on or before
December 31, 2011 will be re-priced using current labor, material, and tax rate.
2. All customer invoices generated between now and December 31, 2011 will have
a letter attached informing customers of the tax increase effective January 1, 2012.
3. All invoices that remain unpaid on December 31, 2011 will be re-priced after
January 1, 2012 to include the 22% ITCC tax factor. A letter will be attached to
this new invoice informing the customer of this change.