Senate bill aims to eliminate all energy tax credits
Sen. Mike Lee, R-Utah, has introduced legislation to eliminate all tax credits for renewable and traditional energy sources. The legislation, titled the “Energy Freedom & Economic Prosperity Act,” is companion legislation to a House bill introduced last year by Rep. Mike Pompeo, R-Kan.
Lee’s legislation, S. 2279, was introduced on May 1 and referred to the Senate Committee on Finance. It currently has no co-sponsors. Pompeo’s bill, H.R. 259, was introduced in January 2013. A total of 34 members of Congress has signed on to support that measure.
“Washington should not be using taxpayer money to pick winners and losers in the energy industry,” said Lee. “Consumer-driven, free-market competition provides a much better way to ensure Americans have access to reliable, affordable energy. The Energy Freedom and Economic Prosperity Act would level the playing field for all energy producers, forcing them to compete for consumer dollars rather than political favors.”
A copy of S. 2279 provided by Lee’s office indicates the bill would repeal Section 6426 of the U.S. code, in general. That section contains tax credits for alcohol fuel, biodiesel and alternative fuel mixtures. It would also repeal Section 30B of the Internal Revenue Code, which contains the tax credit for qualified fuel cell motor vehicles. Section 30D, which contains the credit for new qualified plug-in electric drive motor vehicles, would also be repealed, along with the Section 40 credit for alcohol used as fuel. The repealed credits, however, would not be limited to renewable technologies. The legislation would repeal the Section 43 credit for enhanced oil recovery, the Section 451 credit for producing oil and gas from marginal wells, and would terminate the credit for production from advanced nuclear power facilities under Section 45J. The Section 45Q credit for carbon dioxide sequestration would also be repealed, with the Section 48 energy credit terminated. Lee’s bill would also repeal the Section 48Q credit for qualifying advanced coal projects, the Section 48B qualifying gasification project credit, and the Section 48C qualifying advanced energy project credit. The bill also contains a provision to reduce the corporate income tax rate.
“American families shouldn’t have to subsidize energy companies when they’re having trouble enough paying their utility bills. Companies should have customers, not political patrons. With Sen. Lee’s leadership in the Senate on this important measure, we can eliminate insider deals on energy policy and save money for families across the country,” Pompeo said.