Dole Introduces the New Clean Energy Tax Extenders Act
DOLE INTRODUCES BILL REPEALING TAX BREAKS FOR OIL COMPANIES AND INVESTING IN ALTERNATIVE, RENEWABLE SOURCES FOR ENERGY
Sen. Elizabeth Dole introduced the New Clean Energy Tax Extenders Act to repeal over $17 billion in tax credits to oil companies and redirect that revenue to invest 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."
Dole said, "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."
As part of the American Jobs Creation Act of 2004, which passed in the Senate, 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 about $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 redirects that revenue to extend home and business energy efficiency incentives and alternative and renewable energy tax credits for solar, fuel cells, wing, 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.
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.