Dole Introduces Bill to Repeal Tax Breaks for Oil Companies, Invest Heavily in Alternative, Renewable Energy

Press Release

DOLE INTRODUCES BILL TO REPEAL TAX BREAKS FOR OIL COMPANIES, INVEST IN ALTERNATIVE, RENEWABLE ENERGY

Today, U.S. Sen. Elizabeth Dole introduced the New Clean Energy Tax Extenders Act to repeal more than $17 billion in tax credits to oil companies, and redirect that revenue to investments in alternative and renewable energy resources.

"We need to throw everything and the kitchen sink at our energy crisis, and this bill is one part of that comprehensive solution," said Dole. "In addition to making substantial investments in alternative and renewable resources, we should explore for more energy, pursue a crash course in conservation, and ensure energy markets are functioning properly and fairly."

"With the price per barrel of oil hovering at record highs, the free market is providing more than enough incentive for energy companies to produce more petroleum. Instead of giving oil companies tax breaks to produce more petroleum, we should redirect that funding to investments in alternative and renewable energy resources," Dole added.

As part of the American Jobs Creation Act of 2004, which passed in the Senate by a vote of 69-17, petroleum producers and other American manufacturers were given tax credits to incentivize domestic productivity. The New Clean Energy Tax Extenders Act repeals those tax credits for petroleum producers, which are worth approximately $13.6 billion over ten years. The bill leaves tax credits for other domestic manufacturing sectors intact. It also changes how foreign oil and gas extraction income (FOGEI) is taxed, raising approximately $4.1 billion.

Dole's legislation then redirects that revenue to extend home and business energy efficiency incentives and alternative and renewable energy tax credits for solar, fuel cells, wind, biomass, geothermal and hydro facilities, which were created by the Energy Policy Act of 2005 and are otherwise scheduled to expire at the end of the year.

Background

In recent weeks Democrats put forward unsuccessful proposals to invest in alternative, renewable energy. Instead of making investing in our energy independence a priority, the energy provisions were tied to politically-driven legislation that would have raised taxes, provided an unprecedented $1.2 billion tax credit for the building of a train from Manhattan to John F. Kennedy Airport, a $1.6 billion tax benefit just for trial lawyers, and, for the first time in history, would have made tax benefits directly conditioned to Davis-Bacon prevailing wage requirements.

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