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senate Bill S. 2279

Eliminating All Federal Tax Credits for Energy Companies

Argument in favor

Promotes consumer-driven free-market competition in the energy industry.

Argument opposed

Disproportionately hurts green energy and energy-efficiency technologies.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The house has not voted
  • The senate has not voted
      senate Committees
      Committee on Finance
    IntroducedMay 1st, 2014

What is Senate Bill S. 2279?

This bill would eliminate all current energy tax credits for both renewable and conventional energy sources. In 2013, the Congressional Budgeting Office (CBO) estimated that federal energy tax subsidies cost taxpayers more than $16 billion. Roughly $7.1 billion (45%) of that total went towards subsidies for renewable energy, and another $4.8 billion (29%) went towards subsidies aimed at energy efficiency. The bill was introduced by Sen. Mike Lee (R-UT) and co-sponsored by Sen. Pat Toomey (R-PA). 

According to Rep. Mike Pompeo (R-KS), co-sponsor of the House’s companion bill, the specific subsidies repealed apply to:

 -Plug-In electric and fuel cell vehicles

 -Alternative fuel and alternative fuel mixtures

-the Cellulosic Biofuel Producer Credit

-Alternative fuel infrastructure

-the Production Tax Credit for electricity produced from renewable sources, including wind, biomass, and hydropower

-the Investment Tax Credit for equipment powered by solar, fuel cells, geothermal or other specified renewable sources

-the Enhanced Oil Recovery Credit, and credit for producing oil and gas from marginal wells

-the Advanced Nuclear Power Generation Credit

-Clean coal investment credits 

Impact

If enacted, the bill would offer no tax breaks to energy companies. This elimination of tax credits has the potential, among other effects, to lead to savings for taxpayers, a slowdown in green and renewable energy technologies and innovation, and more free-market competition between energy providers.

Cost of Senate Bill S. 2279

A CBO cost estimate is currently unavailable.

More Information

Media: 


(Photo Credit: Gordon Proven)

AKA

Energy Freedom and Economic Prosperity Act of 2014

Official Title

A bill to amend the Internal Revenue Code of 1986 to terminate certain energy tax subsidies and lower the corporate income tax rate.

    I like the idea of leveling the competition between energy sources. However, fossil fuels need to be held accountable for the cost to human health through smog, mining wastes, and other pollutants. Solar and wind producers have some environmental costs to offset as well, i.e. bird kills. If we force energy producers to offset these costs through fees, and THEN end all the other tax subsidies, the energy sources will be competing on the same level.
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