House Debating Oil-For-Renewables Package Today
From the beginning of her tenure, Speaker Nancy Pelosi (D-Calif.) has attempted to pass legislation cutting billions in tax breaks and royalty payments to oil and gas companies to invest in renewable energy and energy efficiency. The legislation has died twice by a single vote in the Senate – in December as part of the energy bill (H.R. 6), and three weeks ago as part of the economic stimulus legislation (H.R. 5140).
House leadership announced plans to immediately reintroduce the legislation as a standalone bill, named the Renewable Energy and Energy Conservation Tax Act of 2008 (H.R. 5351).
Debate on the bill is now taking place, with a final vote scheduled for some time after 3 PM EST.
Update: HR 5351 passed by a roll call vote of 236-182. 17 Republicans joined the Democratic majority; 8 Democrats (Barrow, Boren, Cuellar, Gene Green, Lampson, Melancon, Ortiz, Rodriguez) voted against passage.
Extends: (1) the tax credit for production of electricity from renewable resources through 2011; (2) the energy tax credit for solar energy and fuel cell property through 2016; (3) the special rule for treatment of gain from electronic transmission transactions by certain electric utilities through 2009; (4) the tax credit for residential energy efficient property expenditures through 2014; (5) the tax credit for alternative fuel vehicle refueling property expenditures through 2010; (6) the tax credit for biodiesel and renewable diesel used as fuel through 2010; (7) the tax credit for nonbusiness energy property expenditures through 2009; and (8) the tax deduction for energy efficient commercial buildings through 2013.Allows new tax credits for: (1) investment in new clean renewable energy bonds and qualified energy conservation bonds; and (2) the production of plug-in hybrid motor vehicles, cellulosic alcohol fuel, and electricity from marine and hydrokinetic renewable energy sources.
Revises the definition of “passenger automobile” for purposes of the limitation on depreciation deductions.
Allows a tax exclusion for bicycle commuting reimbursements.
Revises certain tax incentives for investment in the New York Liberty Zone.
Revises tax credit amounts for certain energy efficient household appliances produced after 2007.
Allows a five-year recovery period for the depreciation of qualified energy management devices.
Places limits on the tax deduction for income attributable to the domestic production of oil, natural gas, and any related products.
Revises tax rules relating to foreign oil and gas extraction income and foreign produced fuel used or sold outside the United States.