Renewable Energy and Energy Conservation Tax Act of 2007

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The Renewable Energy and Energy Conservation Tax Act of 2007 amends Internal Revenue Code provisions relating to renewable energy sources and energy conservation. It passed in the House on August 4, 2007.

Contents

Current status

The bill was approved by the House on August 4, 2007. It is currently awaiting action by the Senate.

Bill summary

House

The House bill approved a set of tax incentives to encourage the use and production of renewable energy and energy conservation, and to repeal tax breaks for oil and gas companies.[1]



Same for all scorecards:

Scored vote

Scorecard: Club For Growth 2007 House Scorecard

Org. position: {{{Vote position 1}}}

Description:

"Vote on passage of the bill, which was a companion proposal to the Energy bill, would raise taxes on oil and gas companies. The pro-growth vote was "nay" because the tax hike would reduce incentives to produce energy and burden consumers. Passed 221-189."

(Original scorecard available at: http://www.clubforgrowth.org/2008/05/the_2007_congressional_scoreca_1.php)

Scored vote

Scorecard: FreedomWorks 2007 House Votes

Org. position: {{{Vote position 2}}}

Description:

"This bill would mandate the use of alternative energy sources while scaling back gains made in domestic exploration and capacity, the costs of which would ultimately be borne by consumers. Even though alternative energy holds promise for the future, federal mandates and taxes will not make the technology viable any faster. All that this bill will do is increase taxes and the price of fuel for the consumer. “Nay” votes scored."

(Original scorecard available at: http://www.freedomworks.org/keyvotes/2007_house.php?state=0&submit=Go)

Scored vote

Scorecard: U.S. Chamber of Commerce 2007 House Scorecard

Org. position: Nay

Description:

"Despite strong opposition from the Chamber, the House approved by a vote of 221-189, H.R. 2776, the Renewable Energy and Energy Conservation Tax Act of 2007. If enacted, this legislation would have established punitive taxes on the oil and natural gas sector. The Chamber supports efforts to increase renewables and energy conservation. However, fossil fuels constitute 86 percent of the nation’s energy mix and will continue to do so for the foreseeable future. H.R. 2776 unfairly and punitively singled out the oil and natural gas industry for what would have amounted to a modern-day version of the 1980–1988 Windfall Profi t Tax. This 1980s-era tax reduced domestic oil production and increased foreign oil imports. Throughout 2007, the Chamber strongly opposed several schemes considered in the House and Senate to single out the oil and natural gas sector for new taxes. Despite the vote on H.R. 2776, no punitive tax increases were included in energy policy legislation ultimately signed into law by President Bush on December 19."

(Original scorecard available at http://www.uschamber.com/issues/legislators/07htv_house.htm

Scored vote

Scorecard: National Journal 2007 House Scorecard

Org. position: {{{Vote position 4}}}

Description:

"Approve tax incentives for renewable energy, largely paid for by cutting tax benefits for oil and gas firms. August 4. (221-189)"

(Original scorecard available at http://www.nationaljournal.com/voteratings/house_votes.htm

The House bill provided for a number of production incentives, including:

  • The long-term extension and modification of renewable energy production tax credits and solar energy and fuel cell investment tax credits (until 2012).
  • $2 billion of new clean renewable energy bonds for public power providers and electric cooperatives.
  • An extension of the present-law deferral on sales of transmission property from electric utilities and their affiliates to a FERC-approved independent transmission company.
  • The removal of caps on the credit for residential solar property (currently capped at $2,000) and residential fuel cell property (currently capped at $500 per half kilowatt of capacity).[2]

Clean transportation incentives include:

  • A plug-in hybrid vehicle credit.
  • A cellulosic alcohol production credit.
  • The extension of a biodiesel production tax credit and the extension and modification of renewable diesel tax credit.
  • The extension and increase of a alternative refueling stations tax credit.
  • Fringe benefit for bicycle commuters.
  • The modification of depreciation and expensing rules for certain vehicles.
  • The restructuring of New York Liberty Zone tax credits.[3]

The House legislation also cuts many oil subsidies and tax credits. Specifically, it:

  • Removes a deduction for oil and gas firms for income attributable to domestic production of oil, natural gas or other primary products
  • Increases the amortization of geological and geophysical expenditures for certain major integrated oil companies to seven years
  • Limits the ability for U.S. oil and gas companies to benefit from foreign tax credits
  • Clarifies eligibility for certain fuel credits.[4]

Senate

On June 21, 2007, Senate Republicans halted a $32 billion package of tax breaks for renewable energy that would have been financed mostly by new taxes on big oil.[5]

Presidential veto threat

President Bush threatened to veto the final legislation because, he argued, it discouraged domestic oil and gas production, and increases the tax burden on the oil industry.[6]

Articles and resources

See also

References

  1. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.
  2. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.
  3. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.
  4. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.
  5. "Bid for Tax Breaks on Renewable Energy Blocked," Associated Press (NPR), June 21, 2007.
  6. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.

Websites

External articles

2005

2007

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