Tax Incentive Proposals from the 110th Congress

H.R. 683: [1] Investment in Energy Independence Act of 2006. The Act would provide income tax credits for investment in coal-to-liquid fuel, biomass, and oil shale energy projects. Investments in facilities which allow for the capture, transportation, or sequestration of carbon dioxide produced by the coal-to-liquid fuel process are also eligible for tax credits. Sponsor: Rep. Ron Lewis (R-KY) (11 cosponsors)

H.R. 1451: [2] New Options Petroleum Energy Conservation Act of 2007. The purpose of the bill is to “provide incentives to reduce dependence on foreign oil,” and includes a Climate Neutral Combustion Credit among other incentives for investing in renewable and alternative fuels and sources of energy. Sponsor: Rep. Dan Lungren (R-CA) (1 cosponsor)

H.R. 2652 [3]: Generating Renewable Energy and Encouraging Novel Technologies Act of 2007. This bill amends various provisions of the Internal Revenue Code with measures intended to generate renewable energy and encourage novel technologies related to the production of energy. Among other provisions, the bill adds enhanced oil recovery projects which enable the capture or sequestration of carbon dioxide produced at a coal-to-liquid fuel facility to those which are eligible for tax credits. Sponsor: Rep. Phil English (R-PA)

H.R. 2776: [4] Renewable Energy and Energy Conservation Tax Act of 2007. Among other provisions, this bill expands and extends tax credits and deductions for renewable energy, energy efficient appliance credit for a variety of appliances produced after 2007, energy-efficient commercial buildings deduction for five years (through December 31, 2013), and allows electric utilities to depreciate smart electric meters over a five year period. In addition, the bill orders the Secretary of the Treasury and the National Academy of Sciences to review the Internal Revenue Code of 1986 to identify the types of and specific tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects. Sponsor: Rep. Charles Rangel (D-NY) (21 cosponsors) Action: 6/20/2007: Reported by the Committee on Ways and Means by a vote of 24-16. 8/4/07: Incorporated into H.R. 3221, which passed the House by 241-172.

H.R. 3089 [5]: [5] No More Excuses Energy Act of 2007. Among other provisions, this bill amends the Internal Revenue Code of 1986 to establish a tax credit for carbon dioxide captured from industrial sources and permanently sequestered as a tertiary injectant in enhanced oil and natural gas recovery. Sponsor: Rep. Mac Thornberry (R-TX) (2 cosponsors)

S. 701: [6] Strategic Energy Fund Act of 2007. Among other provisions, the Act would amend the Internal Revenue Code of 1986 to impose a temporary oil profit fee, and use the profits of this fee to create and expand energy tax incentives, including incentives for and coal-to-liquid projects that practice carbon capture and sequestration. Sponsor: Sen. Hillary Rodham Clinton (D-NY)

S.1370: [7] Clean Energy Investment Assurance Act of 2007. This bill contains a variety of amendments to the Internal Revenue Code of 1986 intended to ensure investment and innovation in clean energy technologies. Among other provisions, it extends the renewable electricity production credit to those facilities which use zero-carbon emissions resources to produce electricity.Sponsor: Sen. Maria Cantwell (D-WA) (3 cosponsors)

S. 1508: [8] Clean Energy Production Tax Incentives Act of 2007. This bill amends various provisions of the Internal Revenue Code of 1986 to promote investment in a variety of energy technologies through the creation, expansion and extension of certain tax credits. Among other provisions, the bill extends the tax credit for qualifying advanced clean coal projects, and instructs the Secretary of Energy to give high priority to projects that incorporate capture and long-term storage of carbon dioxide (CO2), including CO2 enhanced oil recovery. It also establishes a credit for clean coal energy bonds, a tax credit for the capture and storage or use of CO2 , and CO2 capture bonds. Sponsor: Sen. Byron Dorgan (D-ND)

S. 1617: [9]Fuel Reduction using Electrons to End Dependence On the Mid-East (FREEDOM) Act of 2007. Among other provisions amending the Internal Revenue Code of 1986 to promote the development and use of plug-in electric drive motor vehicles, this bill would establish a utility rebate for customers purchasing such vehicles. The quantity of the rebate would be inversely proportional to the amount of greenhouse gases emitted by the taxpayer’s electric utility. Sponsor: Sen. Orrin Hatch (R-UT) (5 cosponsors)