Renewable Energy and Energy Conservation Tax Act of 2007

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The Renewable Energy and Energy Conservation Tax Act of 2007 amends Internal Revenue Code provisions relating to renewable energy sources and energy conservation. It passed in the House on August 4, 2007.

Current status

The bill was approved by the House on August 4, 2007. It is currently awaiting action by the Senate.

Bill summary

House

The House bill approved a set of tax incentives to encourage the use and production of renewable energy and energy conservation, and to repeal tax breaks for oil and gas companies.[1]

<USbillinfo congress="110" bill="H.R.2776" /> <USvoteinfo year="2007" chamber="house" rollcall="835" />

The House bill provided for a number of production incentives, including:

  • The long-term extension and modification of renewable energy production tax credits and solar energy and fuel cell investment tax credits (until 2012).
  • $2 billion of new clean renewable energy bonds for public power providers and electric cooperatives.
  • An extension of the present-law deferral on sales of transmission property from electric utilities and their affiliates to a FERC-approved independent transmission company.
  • The removal of caps on the credit for residential solar property (currently capped at $2,000) and residential fuel cell property (currently capped at $500 per half kilowatt of capacity).[2]

Clean transportation incentives include:

  • A plug-in hybrid vehicle credit.
  • A cellulosic alcohol production credit.
  • The extension of a biodiesel production tax credit and the extension and modification of renewable diesel tax credit.
  • The extension and increase of a alternative refueling stations tax credit.
  • Fringe benefit for bicycle commuters.
  • The modification of depreciation and expensing rules for certain vehicles.
  • The restructuring of New York Liberty Zone tax credits.[3]

The House legislation also cuts many oil subsidies and tax credits. Specifically, it:

  • Removes a deduction for oil and gas firms for income attributable to domestic production of oil, natural gas or other primary products
  • Increases the amortization of geological and geophysical expenditures for certain major integrated oil companies to seven years
  • Limits the ability for U.S. oil and gas companies to benefit from foreign tax credits
  • Clarifies eligibility for certain fuel credits.[4]

Senate

On June 21, 2007, Senate Republicans halted a $32 billion package of tax breaks for renewable energy that would have been financed mostly by new taxes on big oil.[5]

Presidential veto threat

President Bush threatened to veto the final legislation because, he argued, it discouraged domestic oil and gas production, and increases the tax burden on the oil industry.[6]

Articles and resources

Related SourceWatch articles

References

  1. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.
  2. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.
  3. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.
  4. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.
  5. "Bid for Tax Breaks on Renewable Energy Blocked," Associated Press (NPR), June 21, 2007.
  6. Mike Godfrey, "US House Approves Renewable Energy Tax Incentives," Tax-News.com, August 7, 2007.

Websites

External articles

2005

2007