In case you have not yet seen it, below are key documents on Senator
Baucus' proposed revision of federal Energy Tax Breaks. Included are:
1. AWEA's statement commending Senator Baucus.
2. Senate Finance Committee Press Release.
3. Committee Staff's one page Summary of proposal.
An 8-Page "Summary of Staff Discussion Draft: Energy Tax Reform" can
be found at:
The
press release invites comments from Congress, key stakeholders and the general
public by January 31, 2014 and are to be submitted to Tax_Reform@Finance.Senate.gov.
(Note that the Senate Finance Committee follows the supremely
arrogant Washington-Inside the Beltway practice of mentioning the "general
public" separate from "key stakeholders" -- ignoring the fact that all
individual citizens, consumers and taxpayers -- and their children and
grandchildren -- ARE THE KEY STAKEHOLDERS since they bear the entire burden of
the actions of THE WASHINGTON ESTABLISHMENT.
(Is
there really any reason to wonder why a growing number of real people outside
the Washington Beltway are increasingly fed up with the Washington
Establishment's arrogance?)
1. AWEA STATEMENT COMMENDING BAUCUS
AWEA statement on Senate Finance Chairman's Energy Tax Discussion Draft
December 18, 2013
Rob Gramlich, Senior Vice President for Public Policy of the American Wind Energy Association, today released the following statement:
“We commend Chairman Baucus and the Senate Finance Committee for putting forward a sound policy option to provide domestic energy producers with stability for the years to come. The tax code has a century-long history of incentivizing American-made energy, and we must continue to ensure that we have plentiful, secure, clean, affordable energy to power our economy. Wind energy has already proven that it can deliver in these areas and it must continue to be a critical part of the U.S. energy mix. We appreciate Senator Baucus' leadership in trying to find common ground to ensure that the U.S. is well-suited to face the energy challenges of the 21st century by promoting a diverse energy portfolio.”
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2. SENATE FINANCE COMMITTEE PRESS RELEASE
http://www.finance.senate.gov/
WASHINGTON – Senate Finance Committee Chairman Max Baucus (D-Mont.) today unveiled the latest package in a series of proposals to overhaul America’s tax code. This staff discussion draft focuses on streamlining energy tax incentives so they are more predictable and technology-neutral.
“It is time to bring our energy tax policy into the 21st century,” Senator Baucus said. “Our current set of energy tax incentives is overly complex and picks winners and losers with no clear policy rationale. We need a system of energy incentives that is more predictable, rational, and technology-neutral to increase our energy security and ensure a clean and healthy environment for future generations.”
The discussion draft released today focuses on reforming the current set of energy related tax preferences. Under current law, there are 42 different energy tax incentives, including more than a dozen preferences for fossil fuels, ten different incentives for renewable fuels and alternative vehicles, and six different credits for clean electricity. Of the 42 different energy incentives, 25 are temporary and expire every year or two, and the credits for clean electricity alone have been adjusted 14 times since 1978 – an average of every two and a half years. If Congress continues to extend current incentives, they will cost nearly $150 billion over 10 years.
To address these issues, the staff discussion draft proposes a smaller number of targeted and simple energy incentives that are flexible enough to accommodate advances among fuels and technologies of any type – whether renewable, fossil, or anything in between. These proposals are intended to promote domestic energy production and reduce pollution. Specifically, the discussion draft offers proposals to:
Senator Baucus also called for additional feedback from members of Congress, key stakeholders and the general public on the discussion draft. Feedback on the discussion draft is requested by January 31, 2014 and comments can be sent to: Tax_Reform@Finance.Senate.gov.
Last month, Senator Baucus released staff discussion drafts regarding international tax reform, tax administration, and cost recovery and accounting. Summaries and other materials for those drafts can be viewed here.
A detailed summary of the energy tax reform staff discussion draft can be found here, and a one-pager on the draft can be found here.
The full staff discussion draft in legislative language can be found here.
Rob Gramlich, Senior Vice President for Public Policy of the American Wind Energy Association, today released the following statement:
“We commend Chairman Baucus and the Senate Finance Committee for putting forward a sound policy option to provide domestic energy producers with stability for the years to come. The tax code has a century-long history of incentivizing American-made energy, and we must continue to ensure that we have plentiful, secure, clean, affordable energy to power our economy. Wind energy has already proven that it can deliver in these areas and it must continue to be a critical part of the U.S. energy mix. We appreciate Senator Baucus' leadership in trying to find common ground to ensure that the U.S. is well-suited to face the energy challenges of the 21st century by promoting a diverse energy portfolio.”
******************************
2. SENATE FINANCE COMMITTEE PRESS RELEASE
http://www.finance.senate.gov/
For Immediate
Release
December 18, 2013
December 18, 2013
Contact:
Sean Neary/Ryan Carey: 202-224-4515
Baucus Unveils Proposal for Energy Tax Reform
Chairman Calls for Input on Streamlined Set of Energy IncentivesWASHINGTON – Senate Finance Committee Chairman Max Baucus (D-Mont.) today unveiled the latest package in a series of proposals to overhaul America’s tax code. This staff discussion draft focuses on streamlining energy tax incentives so they are more predictable and technology-neutral.
“It is time to bring our energy tax policy into the 21st century,” Senator Baucus said. “Our current set of energy tax incentives is overly complex and picks winners and losers with no clear policy rationale. We need a system of energy incentives that is more predictable, rational, and technology-neutral to increase our energy security and ensure a clean and healthy environment for future generations.”
The discussion draft released today focuses on reforming the current set of energy related tax preferences. Under current law, there are 42 different energy tax incentives, including more than a dozen preferences for fossil fuels, ten different incentives for renewable fuels and alternative vehicles, and six different credits for clean electricity. Of the 42 different energy incentives, 25 are temporary and expire every year or two, and the credits for clean electricity alone have been adjusted 14 times since 1978 – an average of every two and a half years. If Congress continues to extend current incentives, they will cost nearly $150 billion over 10 years.
To address these issues, the staff discussion draft proposes a smaller number of targeted and simple energy incentives that are flexible enough to accommodate advances among fuels and technologies of any type – whether renewable, fossil, or anything in between. These proposals are intended to promote domestic energy production and reduce pollution. Specifically, the discussion draft offers proposals to:
- Establish a new, technology-neutral tax credit for the domestic production of clean electricity
- Establish a new, technology-neutral tax credit for the domestic production of clean transportation fuel
- Consolidate almost all of the existing energy tax incentives into these two new credits, with appropriate transition relief
- Provide businesses and investors with more certainty by making the new incentives long enough to be effective, but phasing them out once clearly defined goals have been met
Senator Baucus also called for additional feedback from members of Congress, key stakeholders and the general public on the discussion draft. Feedback on the discussion draft is requested by January 31, 2014 and comments can be sent to: Tax_Reform@Finance.Senate.gov.
Last month, Senator Baucus released staff discussion drafts regarding international tax reform, tax administration, and cost recovery and accounting. Summaries and other materials for those drafts can be viewed here.
A detailed summary of the energy tax reform staff discussion draft can be found here, and a one-pager on the draft can be found here.
The full staff discussion draft in legislative language can be found here.
###
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3. ONE PAGE SUMMARY
Energy Tax Reform Discussion Draft
Chairman Max Baucus
U.S. Senate Committee on Finance
12/18/13
As
part of his work toward overhauling the U.S. tax code, Chairman Max Baucus is
releasing a staff discussion draft today on energy tax reform. Tax incentives
for domestic production of clean energy, whether from fossil fuels or
renewables, serve important policy objectives. These include reducing damage
from air pollution and greenhouse gas emissions, protecting the economy from
price shocks, and enhancing national security.
Despite the importance of these goals, our current energy
incentives are overly complex and far less effective than they could be. Today,
there are 42 different energy tax incentives. More than half are too short-term
to effectively stimulate investments. They also provide different subsidies to
different technologies with no discernable policy rationale. On top of that,
they result in significant revenue loss: if we continue to extend current
incentives, they will cost nearly $150 billion over ten years.
To
address these issues, this staff discussion draft proposes a dramatically
simpler set of long-term energy tax incentives that are technology-neutral and
promote cleaner energy that is made in the United States. The staff discussion
draft extensively draws on proposals of a number of Senators, including
Committee members Bennet, Brown,
Cantwell, Cardin, Carper, Casey, Crapo, Enzi, Grassley, Menendez, Nelson,
Rockefeller, Thune, and Wyden. Some of the significant proposals in the
discussion draft include:
Tax Credit
for Clean Electricity.
. Technology-neutral tax credit for
domestic production of clean electricity. The cleaner the facility,
the larger the credit.
. Open to all resources –
renewable, fossil, or anything in between.
. Available as either a production
tax credit of up to 2.3 cents/kwh or an investment tax credit of up to 20
percent.
Tax Credit
for Clean Transportation Fuel.
. Technology-neutral tax credit for
domestic production of clean transportation fuel The cleaner
the facility, the larger the credit.
. Open to all resources –
renewable, fossil, or anything in between.
. Available either as a production
tax credit of up to $1/gallon or an investment tax credit of up to
20
percent.
Long-Term, But Not
Permanent. The two credits phase out once the greenhouse gas intensity of
each market has declined by 25 percent.
Consolidated Provisions.
. Almost all existing energy tax
incentives are consolidated into these two new credits, with
appropriate transition relief.
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