Senate Finance Committee Chairman Max Baucus (D-MT) has released a proposal to end some tax breaks for the oil and gas industry, and invest in clean domestic energy sources. Baucus said the proposal would serve as a “blueprint” for legislation he intends to craft in the Finance Committee. Baucus said that with energy prices rising and large oil and gas companies announcing billions in first quarter profits, now is the time to end these subsidies and instead direct that investment to cleaner and more affordable domestic energy solutions.
Baucus said his plan would repeal tax breaks for the largest oil and gas companies, ending incentives for the five largest oil and gas companies, including the elimination of the section 199 manufacturing deduction, reduction in the foreign tax credit for royalty payments to foreign governments and the imposition of an excise tax on certain Gulf leases. He said the plan would also promote demand for clean, domestic fuel by making it easier for manufacturers to produce and for consumers to purchase.
Also, the plan would increase demand for the most fuel efficient vehicles by providing incentives for their purchase and encouraging manufacturers to increase production. And, the chairman said, the plan would incentivize the infrastructure needed to support clean energy vehicles, such as alternative energy fueling stations. There is more information on the plan to promote clean energy and reduce oil industry tax breaks.
Source: “The 25x’25 Weekly Resource”