Common use of Tax Gross-Up Amount Clause in Contracts

Tax Gross-Up Amount. Developer’s liability for the cost consequences of any current tax liability under this Article 5.17 shall be calculated on a fully grossed-up basis. Except as may otherwise be agreed to by the parties, this means that Developer will pay Connecting Transmission Owner, in addition to the amount paid for the Attachment Facilities and System Upgrade Facilities and System Deliverability Upgrades, an amount equal to (1) the current taxes imposed on Connecting Transmission Owner (“Current Taxes”) on the excess of (a) the gross income realized by Connecting Transmission Owner as a result of payments or property transfers made by Developer to Connecting Transmission Owner under this Agreement (without regard to any payments under this Article 5.17) (the “Gross Income Amount”) over (b) the present value of future tax deductions for depreciation that will be available as a result of such payments or property transfers (the “Present Value Depreciation Amount”), plus (2) an additional amount sufficient to permit the Connecting Transmission Owner to receive and retain, after the payment of all Current Taxes, an amount equal to the net amount described in clause (1).

Tax Gross-Up Amount. Developer’s liability for the cost consequences of any current tax liability under this Article 5.17 shall be calculated on a fully grossed-grossed- up basis. Except as may otherwise be agreed to by the partiesDeveloper and an affected Connecting Transmission Owner, this means that Developer will pay the affected Connecting Transmission Owner, in addition to the amount paid for the Attachment Facilities and System Upgrade Facilities and System Deliverability Upgrades, an amount equal to (1) the current taxes imposed on the affected SERVICE AGREEMENT NO. 1757 Connecting Transmission Owner (“Current Taxes”) on the excess of (a) the gross income realized by the affected Connecting Transmission Owner as a result of payments or property transfers made by Developer to the affected Connecting Transmission Owner under this Agreement (without regard to any payments under this Article 5.17) (the “Gross Income Amount”) over (b) the present value of future tax deductions for depreciation that will be available as a result of such payments or property transfers (the “Present Value Depreciation Amount”), plus (2) an additional amount sufficient to permit the Connecting Transmission Owner to receive and retain, after the payment of all Current Taxes, an amount equal to the net amount described in clause (1).plus

Tax Gross-Up Amount. Developer’s liability for the cost consequences of any current tax liability under this Article 5.17 shall be calculated on a fully grossed-grossed- up basis. Except as may otherwise be agreed to by the partiesDeveloper and an affected Connecting Transmission Owner, this means that Developer will pay the affected Connecting Transmission Owner, in addition to the amount paid for the Attachment Facilities and System Upgrade Facilities and System Deliverability Upgrades, an amount equal to (1) the current taxes imposed on the affected Connecting Transmission Owner (“Current Taxes”) on the excess of (a) the gross income realized by the affected Connecting Transmission Owner as a result of payments or property transfers made by Developer to the affected Connecting Transmission Owner under this Agreement (without regard to any payments under this Article 5.17) (the “Gross Income Amount”) over (b) the present value of future tax deductions for depreciation that will be available as a result of such payments or property transfers (the “Present Value Depreciation Amount”), plus (2) an additional amount sufficient to permit the Connecting Transmission Owner to receive and retain, after the payment of all Current Taxes, an amount equal to the net amount described in clause (1).plus