Verizon Communications announced on Wednesday that the new tax overhaul bill recently signed into law by the president will allow the company a one-time reduction in net deferred income tax liabilities.
The amount is around $16.8 billion and will increase Verizon’s fourth quarter earnings and for the year ending December 31st, 2017. The company has forecast EPS for the year ended to be about $4.10 due to the impact of the law.
According to Verizon’s filing however, the one-time reduction will not have any impact on the 2017 statement.
The new tax law will cut the corporate tax rate from 35% down to 21%.
Disclaimer: We have no position in Verizon Communications Inc. (NYSE: VZ) and have not been compensated for this article.