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Energy Tax Policy (CRS Report for Congress)

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Release Date Revised May 25, 2006
Report Number IB10054
Authors Salvatore Lazzari, Resources, Science, and Industry Division
Source Agency Congressional Research Service
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Summary:

H.R. 4, omnibus energy legislation in the107th Congress that would have expandedenergy tax incentives significantly, wasdropped in conference. Also, in 2002 certainenergy lax provisions that had expired wereextended retroactively as part of Job Creationand Worker Assistance Act (P.L. 107-147).On April 2, 2003, the Senate Finance Committeeapproved, by a vote of 18-2, S. 597 (theEnergy Tax Incentives Act of 2003). On April3, the House Ways and Means Committeevoted 24-12 for H.R. 1531, its version ofenergy tax incentives, including about $80million in revenue offsets. Both bills provideabout $18 billion of gross tax cuts for energyconservation and for production of oil and gas,but S. 597 includes about $3 billion of tax andfee increases, while H.R. 1531 includes about$80 million of tax increases. Both bills includetax measures for oil and gas production,oil and gas refining and distribution, electricityindustry restructuring, energy efficiency,renewable and alternative fuels, and severalmiscellaneous items. But S. 597 retains lastyear's clean coal tax incentives, while the H.R.1531 does not.