Senate Tacks Tax Extenders Onto Bailout Bill

Posted by Brad Johnson on 01/10/2008 at 11:11AM

The Senate is attaching their version of H.R. 6049 to the bailout bill they plan to vote on this evening.

The New York Times reports:

Senate leaders scheduled a Wednesday vote on a $700 billion financial bailout package after accepting tax breaks and a higher limit for insured bank deposits in a bid to win House approval and send legislation to President Bush by the end of the week. . . The Senate proposal would cost more than $100 billion and extend and expand many individual and business tax breaks, including tax credits for the production and use of renewable energy sources, like solar energy and wind power.

The bill would also extend the business tax credit for research and development, expand the child tax credit, protect millions of families from the alternative minimum tax and provide tax relief to victims of recent floods, tornadoes and severe storms.

Climate Progress has more.

Senate Passes Baucus-Grassley Tax Extenders Package With Clean And Dirty Fuel Incentives

Posted by Brad Johnson on 23/09/2008 at 08:05PM

By a vote of 93-2 (Crapo and Kyl opposed; Biden, DeMint, Kennedy, McCain, and Obama abset), the Senate passed the Baucus-Grassley Energy Improvement and Extension Act (S.Amdt. 5633 to H.R. 6049) this afternoon. The $100 billion bill extends the solar incentives through 2016 and other renewable production tax credits for one or two years. There are $8.3 billion in funds for this year’s climate disasters, including the Midwest floods and Gulf Coast hurricanes. Some tax breaks for oil companies are rolled back, but the bill is far from fully funded (even ignoring the giant AMT protection).

Significant elements of the bill, as passed: Energy incentives

  • Extends for one or two years and expands production tax credits for wind, refined coal, biomass and marine renewables. $5.8 billion.
  • Extends through 2016 the investment tax credit for solar energy. $1.9 billion.
  • Extends through 2016 the credit for residential solar property. $1.3 billion.
  • Provides new tax credits for creation of advanced coal electricity projects and certain coal gasification projects. $1.4 billion.
  • Establishes a new credit for plug-in electric drive vehicles. $758 million.
  • Extends credit for energy-efficient improvements to existing homes. $837 million.

Alternative Minimum Tax

  • Increases personal credits against the AMT, shielding more than 20 million taxpayers from the tax. $61.8 billion.
  • Protects those exposed to the AMT because of incentive stock options. $2.3 billion.

Individual and business tax credits

  • Extends until end of 2009 the research and development credit. $19 billion.
  • Extends until end of 2009 the deduction for state and local general sales taxes. $3.3 billion.
  • Extends until end of 2009 a tax deduction for higher education costs. $5.3 billion.
  • Extends until end of 2009 a deduction for a teacher’s personal expenses. $410 million.
  • Lowers the refundable threshold for the child tax credit for the 2008 tax year. $3.1 billion.

Other

  • Requires private insurance plans that offer mental health benefits to offer such benefits on a part with medical-surgical benefits. $3.9 billion.
  • Provides tax relief to victims of natural disasters in Midwest and elsewhere. $8.3 billion.

Environmental Coalition on Baucus-Grassley: 'Pass Clean Energy Incentives; Strip out Provisions that Support Dirty Fuels'

Posted by Brad Johnson on 18/09/2008 at 04:25PM

A coalition of 16 environmental organizations (and the League of Women Voters) is sending a joint letter to U.S. Senators indicating a joint position on the Baucus-Grassley tax extenders package (H.R. 6049). They write:

On behalf of our millions of members and activists, we urge Congress to pass the clean energy tax incentives included in the Energy Improvement and Extension Act of 2008 and strip the bill of incentives for dirty fossil fuels. Congress should take this opportunity to promote a new energy economy and begin the fight against global warming, and not reward the big oil and dirty coal industries.

The organizations are the Alaska Wilderness League, Audubon, the Center for International Environmental Law, Clean Water Action, Defenders of Wildlife, Earthjustice, Environment America, the Environmental Defense Fund, Friends of the Earth, League of Conservation Voters, League of Women Voters of the United States, Natural Resources Defense Council, Sierra Club, Southern Alliance for Clean Energy, The Wilderness Society, and the Union of Concerned Scientists.

The National Wildlife Federation, because of the “sweeping new federal subsidies for oil shale, tar sands and liquid coal refining,” “dirty fuels that will dramatically increase global warming pollution and threaten millions of acres of wildlife habitat,” is sending a letter in unambiguous opposition to Baucus-Grassley.

The text of both letters is after the jump.

Republicans Filibuster Renewable Tax Credit Legislation Again

Posted by Brad Johnson on 18/06/2008 at 07:54AM

By a 52-44 vote, the Senate failed to achieve cloture on the Renewable Energy and Job Creation Act of 2008 (H.R. 6049), the tax package that included extensions of the renewable production tax credit, energy efficiency incentives, and a suite of other tax credit extensions. This version included an Alternative Minimum Tax (AMT) patch without any offset.

Sen. Reid (D-Nev.) cast a procedural vote with the Republicans and Sens. Clinton, Kennedy, McCain, and Obama did not vote. Sens. Collins, Coleman, Corker, Smith, and Snowe voted with the Democrats (Collins, Coleman, and Smith are up for re-election). The voting was otherwise entirely on party lines.

The timeline of the tax credits:

  • FILIBUSTERED: June 17: H.R. 6049 filibustered 52-44 (Reid procedural vote with GOP)
  • FILIBUSTERED: June 10: H.R. 6049 filibustered 50-44 (Reid procedural vote with GOP)
  • PASSES SENATE, DIES IN HOUSE: April 10: S.Amdt. 4419 (tax credits without offsets, attached to Dodd housing bill) passes 88-8; not in House version
  • PASSES HOUSE: February 27: House passes Renewable Energy and Energy Conservation Tax Act (H.R. 5351; tax credits paid by closing oil loopholes) 236-182; referred to the Senate Finance Committee.
  • FILIBUSTERED: February 6: S. Amdt 3983 to H.R. 5140 (tax credits without offsets, attached to stimulus package) filibustered by one vote (58-41; Reid procedural vote with GOP, McCain not voting)
  • January 30: Senate Finance Committee attaches tax credits to stimulus package
  • FILIBUSTERED: December 13: H.R. 6 (tax credits paid by closing oil loopholes) filibustered by one vote (59-40; Landrieu with GOP, McCain not voting). Version of H.R. 6 without tax credits or RES passes 86-8.
  • PASSES HOUSE: December 6: House passes H.R. 6 with tax credits and RES 235-181.
  • June 21: Senate passes S.Amdt.1502 to H.R. 6 (no tax credits or RES)
  • FILIBUSTERED: June 21: S.Amdt. 1704 to S.Amdt. 1502 to to H.R. 6 (tax credits paid by closing oil loopholes) filibustered 57-36 (Landrieu with GOP, Boxer, Brownback, Coburn, Johnson, McCain, Sessions not voting)
  • PASSES HOUSE: January 18: House passes H.R. 6 with tax credits and RES 264-163.

Senate Republicans block movement on two bills to spur renewable energy investment

Posted by on 11/06/2008 at 08:16AM

Cross-posted from Gristmill.

With gas prices now averaging a record $4.04 a gallon in the United States, the Senate voted on two bills Tuesday that would have revoked tax breaks for Big Oil and extended tax credits to renewable energy. Proponents of the two measures touted them as vital for consumer relief and transition to new energy sources, but both measures failed to muster the 60 votes needed to proceed.

The first vote, on the Consumer First Energy Act (S. 3044), fell short of cloture by a vote of 51-43. The second, on the Renewable Energy and Job Creation Act of 2008 (H.R. 6049), failed by a vote of 50-44. Both votes fell largely along party lines.

The Consumer First Energy Act

The Consumer First Energy Act would have levied a 25 percent tax on “windfall profits” of major oil companies, the proceeds of which would be invested in the Energy Independence and Security Act Trust Fund. Companies could avoid the tax by investing in renewable energy.

“It will force the oil companies to do something to help us get out of this mess instead of just profiting from it,” said Sen. Chuck Schumer (D-N.Y.) on the floor shortly before the vote.

The bill would also repeal tax breaks for major oil and gas companies, estimated at a value of $17 billion over the next 10 years, and suspend filling of the Strategic Petroleum Reserve through the end of 2008. There were measures to discourage “price gouging” and limit speculation in oil markets. The bill would also call for a NOPEC policy (clever acronym alert: “No Oil Producing and Exporting Cartels”). This would crack down on the Organization of the Petroleum Exporting Countries (OPEC) by amending anti-trust laws and allowing the U.S. Attorney General to take legal action against countries and companies. Currently, a court ruling from 1979 gives OPEC members immunity in U.S. courts.

Republican leaders spoke on the floor in favor of expanding domestic oil drilling in places like the Arctic National Wildlife Refuge as a solution to gas-price woes rather than measures to move toward renewable energy sources. “This bill isn’t a serious response to high gas prices. It’s just a gimmick,” said Minority Leader Mitch McConnell (R-Ky.). “Republicans are determined to lower gas prices the only way we can: increasing supply.”

But proponents of the bill were adamant that the only way to bring down the costs of oil in the long term is to curb the country’s dependence on the fossil fuel. “We are in an oil crisis, and we better start taking action to get out of this mess,” said Bob Menendez (D-N.J.). “Feeding that addiction by tapping another vein just drills us into a deeper hole.”

Democratic leaders pointed out that Republicans wanted to talk about gas prices last week, when a climate change bill was on the floor, but when a bill addressing the underlying causes of high gas prices came up, Republicans refused to let it proceed.

“Last week they wanted to make global warming legislation about gas prices,” said Majority Leader Harry Reid (D-Nev.). “When they have the chance to vote on it, they walk away.”

Six Republicans – Norm Coleman (Minn.), Susan Collins (Maine), Chuck Grassley (Iowa), Gordon Smith (Ore.), Olympia Snowe (Maine), and John Warner (Va.) – voted in favor of moving to debate on the proposed legislation. Democrat Mary Landrieu (La.) voted against it (as did Reid, but his was a procedural move to ensure that he can bring the bill to the floor again in the future).

The Renewable Energy and Job Creation Act

The second bill, the Renewable Energy and Job Creation Act of 2008, was the Senate partner to the tax-extenders legislation that passed in the House last month. The $54 billion package would have extended tax breaks for renewable energy that are set to expire at the end of this year. It includes a six-year extension of the investment tax credit for solar energy; a three-year extension of the production tax credit for biomass, geothermal, hydropower, landfill gas, and solid waste; and a one-year extension of the production tax credit for wind energy. The bill also has incentives for the production of renewable fuels such as biodiesel and cellulosic biofuels, incentives for companies that produce energy-efficient products, and incentives to improve efficiency in commercial and residential buildings. Funding for the tax credits would come from closing loopholes for hedge-fund managers and multinational corporations.

Republicans Smith, Snowe, and Bob Corker (Tenn.) voted in favor of cloture on the bill, as did all of the Democrats present for the vote.

The tax-break extensions have stalled in the Senate several times before, and folks in the renewables industry are starting to get nervous as we near the expiration of those credits at the end of this year.

“More than ever, with record energy prices, record unemployment, and grave concerns about global warming, Congress needs to work out differences so we can stabilize energy costs for consumers and businesses, improve our nation’s energy security, and create tens of thousands of quality, green-collar jobs,” said Solar Energy Industries Association President Rhone Resch following the vote.

Green groups rushed to chastise GOP leaders for the obstruction. “By once again blocking efforts to extend these crucial clean energy tax incentives that are in danger of expiring, this minority is responsible for kicking the economy while it’s down,” said Sierra Club Executive Director Carl Pope in a written statement. “Jobs are already being lost in the renewable-energy industry and at least 100,000 more could disappear unless Congress acts to immediately renew these tax incentives.”

Resume consideration of the motion to proceed to S. 3044, the Consumer-First Energy bill

The Senate will resume consideration of the motion to proceed to S. 3044, a bill to provide energy price relief and hold oil companies and other entities accountable for their actions with regard to high energy prices, and for other purposes; provided, that there be one hour for debate prior to the cloture vote, equally divided and controlled between the two Leaders or their designees, with the final 20 minutes equally divided between the two Leaders or their designees, with the Majority Leader controlling the final 10 minutes prior to the cloture vote on the motion to proceed.

In addition, cloture has been filed on H.R. 6049, an act to amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes.

U.S. Senate
Capitol
10/06/2008 at 10:00AM

Markup of H.R. 6049, the Energy and Tax Extenders Act of 2008

The House Committee on Ways and Means today passed bipartisan legislation to extend vital tax relief to millions of families, strengthen investment opportunities for American businesses and encourage the production and use of renewable energy. The legislation, H.R. 6049, the Energy and Tax Extenders Act of 2008, was introduced by Committee Chairman Charles B. Rangel (D-NY) and could be considered by the full House of Representatives as early as next week. H.R. 6049 passed the Committee by a vote of 25-12.

Information.

H.R. 6049 Energy and Tax Extenders Act of 2008

Summary: H.R. 6049, the Energy and Tax Extenders Act of 2008, will provide almost $20 billion of tax incentives for investment in renewable energy, carbon capture and sequestration demonstration projects, energy efficiency and conservation. The bill will also extends $27 billion of expiring temporary tax provisions, including the research and development credit, special rules for active financing income, the State and local sales tax deduction, the deduction for out-of-pocket expenses for teachers, and the deduction for qualified tuition expenses. In addition, the bill provides almost $10 billion of additional tax relief for individuals through an expansion of the refundable child tax credit and a new standard deduction for property taxes. The bill would be primarily offset by closing a tax loophole that allows individuals that work for certain offshore corporations, such as hedge fund managers, to defer tax on their compensation and would delay the effective date of a tax benefit that has not yet taken effect for multinational corporations operating overseas.

House Ways and Means Committee
1100 Longworth

15/05/2008 at 10:30AM