By Meredith Irvin and Erin Book, Managing Directors, SNR Denton
In a week-long blog series, Meredith Irvin and Erin Book will summarize the main climate and/or energy proposals that are currently being discussed as we head into the final working days of the 111th Congress.
Today’s blog discusses: Ways and Means Energy Tax Bill
In addition to the various proposals addressing energy and climate policy, Congress is considering a tax package containing energy-related tax incentives. Though the House Ways and Means Chairman Sander Levin (D-MI) has released a draft bill, action on the measure will probably be delayed until after the August break. The legislation contains additional funding for the Section 48C advanced manufacturing tax credit; a $3.5 billion dollar volume cap increase in the Clean Renewable Energy Bonds (“CREBs”) program; and energy-related tax incentive extensions such as research and development, biodiesel and other alternative fuels, large hybrid vehicles, and open-loop biomass.
Finance Chairman Max Baucus (D-MT) and Energy and Natural Resources Chairman Bingaman are rumored to be working on a Senate version. Although revenue offsets for this bill are not yet clear, they are expected to include the elimination of oil and gas tax preferences, such as the manufacturing tax credit (Section 199) and eliminating the deduction for intangible drilling costs.
For additional information on Energy Law, see David J. Muchow and William A. Mogel, Energy Law and Transactions, and the Energy Law page.