Policy & Guidance

Worksheet H

Calculation of Earnings Before Taxes

With and Without Pollution Control Project Costs

A. Earnings Without Pollution Control Project Costs

EBT = R - CGS - CO

Where:	EBT	=	Earnings Before Taxes
	R	=	Revenues
	CGS	=	Cost of Goods Sold (including the cost of materials, direct labor, indirect labor, rent and heat)
	CO	=	Portion of Corporate Overhead Assigned to the Discharger (selling, general, administrative, interest, R&D expenses, and depreciation on common property)

  Three Most Recently Completed Fiscal Years

	19___		19 ___		19 ___
R	$________		$________		$________		(1)
CGS	$________		$________		$________		(2)
CO	$________		$________		$________		(3)
EBT [ (1) - (2) -(3) ]	$________		$________		$________		(4)

Considerations: Have earnings before taxes changed over the three year period? If so, what would a "typical" year's EBT be? Please explain below.

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Worksheet H, Continued

B. Earnings With Pollution Control Project Costs

EWPR = EBT - ACPR

Where:	EWPR	=	Earnings with Pollution Control Project Costs
	EBT	=	Earnings Before Taxes (4)
	ACPR	=	Total Annual Costs of Pollution Control Project [Worksheet G, (5) ]

	19__ *
EBT (4)	$________  (5)
ACPR [Worksheet G, (5)]	$________  (6)
EWPR [ (5) - (6) ]	$________  (7)

^* The most recently completed fiscal year

Considerations: Is the discharger expected to have positive earnings after paying the annual cost of pollution control? __ Yes __ No

Additional Comments:

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