NEW BILL TO DO NEW ENERGY WITH OIL MONEY

New Legislation Proposes Slashing 'Big Oil' Subsidies To Promote Renewables

Jessica Lillian, 3 May 2012 (Solar Industry)

”…[T]he Investing to Modernize the Production of American Clean Energy and Technology Act of 2012 (IMPACT Act)…was introduced in the U.S. House of Representatives…[Its purpose is ‘to provide incentives for clean energy and to repeal fossil fuel subsidies for big oil companies’]…

“…[I]t would extend the U.S. Department of Treasury's Section 1603 cash-grant program. Revival of this program, which expired at the end of last year…[and] extend the production tax credit for solar and other forms of renewable energy for eight years, and extend the election of the investment tax credit]…The Section 48C program, which allows manufacturers of renewable energy equipment to claim a 30% tax credit, would also receive a boost; its funding would be increased by $5 billion.”

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80% of all federal energy subsidies have gone to fossil fuels over the last half century.

”These and the other measures introduced, which also include incentives for offshore wind and tax credits for electric vehicles, would all be paid for by the elimination of certain fossil-fuel subsidies. [In Congress' highly polarized climate, even optimistic renewable energy supporters - and, likely, the bill's authors themselves - know that a bill that espouses pulling long-standing fossil fuel subsidies in order to pay for clean energy subsidies is already dead]…

“…The bill closes six different tax loopholes for large international oil companies, including tax breaks related to last-in, first-out accounting methodology, foreign tax credits, deductions for manufacturing, intangible drilling costs, percentage depletion allowance, and tertiary injectants…[It would] save $44.8 billion over 10 years…Enacting major energy legislation, however, appears to be off the table…[at least until] the next lame-duck session of Congress…”