Senate Begins Expedited Process for Repealing Oil, Gas Tax Subsidies
Publication Date: 03/21/2012
The Senate could vote in the near future on legislation that would extend expired and expiring energy tax incentives and pay for it by repealing tax subsidies for the major integrated oil and gas companies.
The Repeal Big Oil Tax Subsidies Act (S. 2204) was introduced March 19 by Sen. Robert Menendez (D-N.J.) under Senate Rule 14, which means it will skip the committee process and be immediately placed on the Senate calendar. It can be brought to the floor at any time by the majority party.
Some of the expired tax credits that would be extended through 2012 include the credit for energy-efficient existing homes as well as the credit for energy-efficient new homes; the credit for certain plug-in electric vehicles; and the tax credit for energy-efficient appliances.
It also would extend the expired Section 1603 grants in lieu of credits for the renewable energy program as well as an extension of the cellulosic biofuel producer credit, and extend investment tax credits under Section 48 for offshore wind facilities.
The Senate recently voted on an amendment to the surface transportation bill (S. 1813) containing many similar provisions, but it failed to garner enough votes for adoption.
Limitations on Oil, Gas Companies
To pay for the legislation, the Menendez bill incorporates Democratic-favored limitations on oil and gas companies such as:
• limiting the amount of foreign tax credits available to the companies;
• repealing the Section 199 domestic manufacturing deduction;
• repealing expensing of intangible drilling costs;
• repealing the percentage depletion allowance for independent oil and natural gas producers; and
• repealing the deduction for tertiary injectants.
The complete text of this article can be found in the BNA Daily Tax Report, March 21, 2012. For comprehensive coverage of taxation, pension, budget, and accounting issues, sign up for a free trial or subscribe to the BNA Daily Tax Report today. Learn more »
© 2012, The Bureau of National Affairs, Inc.