HOUSE DEMS PRESS GOP SENATORS ON NEW ENERGY INCENTIVES

In a move obviously designed to force a choice on the recalcitrant Republican minority in the Senate that continues to block extension of the incentives New Energy needs to sustain its unprecedented growth, the Democratic majority in the House of Representatives once again pushed through a New Energy incentives package.

The bill, which includes a wide range of tax extensions and provisions for tax relief, now goes to the Senate where the problematic Republican minority may now be forced to choose between voting against the very popular funding of New Energy or voting to “raise taxes,” in President Bush’s description. It is a choice many Republicans would rather not have in an election year in which even GOP pundits have admitted the Republican brand is “in trouble.”

Democrats insist their motivation is to seize the opportunity the election year offers. The pressure of facing voters may be enough to turn the 1 or 2 Senate Republican votes necessary to get the package through. It is also true, however, that if the bill fails in the Senate it will likely bolster Democratic election year strength with the party base and the growing independent bloc of U.S. voters who, in poll after poll, show a strong predisposition toward New Energy development.

Congressman Charles Rangel, Chairman, House Ways and means Committee: “We now have an opportunity to reverse the trend of dangerous addiction to foreign oil and the lack of political will to do something to beat that addiction…The possibilities of this legislation are virtually endless when you think of the variety of sources we can use to produce renewable energy. This bill presents a great opportunity to explore new areas and develop new technologies…”

President Bush, who does not have to face voters in November, says he will veto the bill because it increases taxes. House members who opposed H.R. 6049 stuck to this line.

Congressman Jim McCrery (R-La,), ranking member, House Ways and Means Committee: "This bill shows that the only tool the majority has to meet its pay-go rules is the hammer of tax increases. It's no wonder that to them, every problem looks like a nail…"

The House bill may be part of a larger strategy. Senator Max Baucus (D-Mont.), Chairman, Senate Finance Committee, is considering a separate tax credit extensions package. He has said he will bring it to the Senate floor this spring and he has said it has compromises that will satisfy both sides of the aisle. It is possible the Baucus plan will be less objectionable to the recalcitrant Republican minority and win compromise approval when compared to the tougher House legislation.

H.R. 6049 extends the 30% solar energy investment tax credit (ITC) 6 years and the wind energy 2% production tax credit (PTC) 1 year. It extends biomass, geothermal, hydropower, landfill gas and solid waste PTCs 3 years. It also provides incentives for carbon capture and sequestration demonstration projects, renewable fuels, plug-in hybrid cars and other energy efficient products, commercial/residential building energy efficiency improvements and state/local government investments in infrastructure and research.

Sign a petition supporting the New Energy incentives at Support Renewable Energy Tax Credits

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House Votes Tax Breaks For Alternative Energy
Martin Vaughn, May 22, 2008 (Wall Street Journal)
and
US House passes $54 billion in tax breaks, alternative energy incentives
May 21, 2008 (PR-Inside)

WHO
U.S. House of Representatives (Nancy Pelosi (D-Calif), Speaker; Congressman Jim McDermott (D-Wash.), member, House Ways and Means Committee; Congressman Jim McCrery (R-La,), ranking member, House Ways and Means Committee); U.S. Senate (Senator Max Baucus (D-Mont.), Chairman, Senate Finance Committee

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WHAT
The House passed H.R. 6049, The Renewable Energy and Job Creation Act of 2008, by a 263-160 vote, extending the New Energy tax incentives and funding a variety of other New Energy programs as well as funding a total of $57 billion worth of tax relief and tax extension programs.

WHEN
- The bill passed the House May 21.
- Senator Baucus says he will bring his tax extenders package to the Senate floor in June.
- The national election is in November.

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WHERE
The bill now goes to the Senate. If it passes there, it will become law if and when the President signs it.

WHY
- H.R. 6049 provides (1) 6-year extension of the solar energy investment tax credit (ITC); (2) 3-year extensions of the biomass, geothermal, hydropower, landfill gas and solid waste production tax credits (PTCs); (3) 1-year extension of the wind energy PTC; (4) incentives for carbon capture and sequestration demonstration projects; (5) renewable fuels (ex: biodiesel) production incentives; (6) energy efficient products incentives (ex: plug-in hybrid cars) and incentives for commercial/residential building energy efficiency; (7) tax credit bonds for state/local government energy conservation investments in infrastructure and research
- The bill also provides tax relief in the form of (1) state/local sales tax deduction, (2) tuition/education expenses deduction, (3) teacher out-of-pocket expenses deduction, (4) property tax deductions, and (5) expansion of the refundable child tax credit.

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QUOTES
- Congressman Jim McDermott (D-Wash.), member, House Ways and Means Committee: "It will be very hard for people to turn down tax extenders and the energy policy that's in this bill…"
- Nancy Pelosi (D-Calif), Speaker of the House of Prepresentatives: “It would cut taxes for millions of middle-income families…30 million homeowners would benefit from the property tax credit, the refundable tax credit would help the parents of 13 million children and renewal of a deduction for tuition and other education costs would benefit 4.5 million families. An additional 11 million would be affected by extending current deductions for state and local sales taxes…”