Congress Tackles Energy and Tax Bills
September 17th, 2008
House and Senate leaders continue their efforts to pass both a comprehensive energy bill along with a separate tax package that will extend the expiring renewable energy tax credits.
After weeks of negotiation, the House of Representatives passed HR 6899, the Comprehensive American Energy Security and Consumer Protection Act, on Tuesday, September 16. The measure includes provisions to open significant new areas in U.S. waters to oil and gas drilling. Also included are incentives totaling roughly $19 billion for renewable energy, new clean coal technologies, and alternative fuels, as well as energy-efficient buildings. The bill would also require that fifteen percent of power generation come from renewable sources by 2020. The President has issued a statement that he would veto the House-passed energy bill should it be presented to him, and the outlook for Senate consideration of H.R. 6899 before the end of the session is not clear at this time.
On Tuesday, September 16, Finance Committee Chairman Max Baucus and Ranking Member Chuck Grassley announced that they had reached an agreement with Senate Leadership to move a bipartisan tax package. The measure, which could be considered during the next several days, would extend dozens of expired and expiring tax provisions. The bill would also extend various renewable energy tax credits that are scheduled to expire at the end of the year. The outlook for final passage of a comprehensive tax package before Congress breaks for the election is also not clear at this time. Congress has been deadlocked over tax issues for months. Democrats are seeking revenue-raising offsets for the tax breaks under pay-as-you-go rules, while Republicans argue that extensions of current tax policy should not require offsets. The tax legislation, including provisions for renewable energy, is separate from the broader energy legislation that the Senate is expected to take up in the near future.
Helios Strategies continues to advocate for extension of the renewable energy tax credits, along with specific provisions of importance to our clients, such as those included for the marine renewable energy industry.