House Passes Energy Bill
ith PTP Provision; Senate Bill with PTP
Provision to be
On September 16 the House passed H.R. 6899, the "Comprehensive American
Energy Security and Consumer Protection Act," by a vote of 236
ontentious debate over its offshore drilling and tax provisions.
extends expiring energy tax provisions and provides tax incentives
(approximately $18 billion worth) for investment in renewable energy, carbon
capture and sequestration demonstrati
on projects, energy efficiency and
Section 830 of the bill (page 264) contains the provision to add
transportation and storage of renewable fuels to qualifying income for PTPs.
The revenue cost of these provisions is offset by repealing the
manufacturing and production credit and changing the taxation of foreign oil
and gas income.
The House bill is considered a non
starter in the Senate due to opposition by
Republicans and some producer
state Democrats to the restrictions it p
and the lack of revenue sharing for coastal states, among other
provisions. In addition, the White House has threatened to veto the bill.
In the meantime, also on September 16, Finance Committee Chairman Max
MT) and ra
nking minority member Charles Grassley (R
the Democratic and Republican Senate leadership in reaching an agreement for
moving energy legislation, alternative minimum tax (AMT) relief, and
extension of expiring tax provisions in separate votes on
package of energy tax provisions that will be brought to the floor is similar to
S. 3478, introduced earlier in the week, except that repeal of the section 199
production credits ha
s been taken out of the bill.
The revised package now
tains two PTP provisions: one adding income and gains from industrial
source carbon dioxide to qualifying income (section 116 on page 66) and the
other our renewable fuels provision (section 208 on page 89).
The floor vote, which initially was to take pla
ce the week of September 15, is
now scheduled for September 23.
for the text of H.R. 6899
for the revenue estimate for H.R. 6899
for the text of the current Senate energy tax provisions
revenue estimate for the Senate provisions