WALZ BACKS PLAN TO INVEST IN RENEWABLE ENERGY, CREATE NEW JOBS

02/28/2008

Legislation extends and expands tax incentives for renewable energies and energy conservation efforts; slashes handouts for big oil


Washington, D.C. - Today, Rep. Tim Walz will vote for landmark legislation that will make significant new investments in renewable energy sources, create hundreds of thousands of new jobs, help end our dependence on foreign oil and slash taxpayer funded subsidies to oil companies. The Renewable Energy and Energy Conservation Tax Act of 2008 is expected to come to a vote in the House later this afternoon.

"Americans clearly understand that when it comes to resolving the energy crisis, we are all in this together," said Walz. "With oil prices reaching another record high of $102 per barrel today and families paying $3.15 a gallon for gasoline, the time for action on renewable energy and American energy independence is now."

"This bill is good for our environment, good for our economy and good for our national security," said Walz. "Ending our dependence on foreign oil and using renewable energy to help fight global warming will make our nation stronger. And at a time when our economy is struggling, these investments will help create hundreds of thousands of new jobs. "

The Renewable Energy and Energy Conservation Tax Act makes new investments that will help reduce our dependence on foreign oil, increase renewable electricity production, create jobs and protect our environment. The bill extends and expands tax incentives for renewable electricity, energy and fuel, as well as for plug-in hybrid cars, and energy efficient homes, buildings, and appliances. Additionally, the bill includes solar energy tax credits that could reduce carbon dioxide pollution by 240 million tons.

The new investments in wind, solar, geothermal and fuel cell technology will also create hundreds of thousands of new jobs and help strengthen the American economy. The Geothermal Energy Association estimates that the geothermal provisions alone could create tens of thousands of new jobs and stimulate tens of billions of dollars of new investment in geothermal energy production.

Additionally, the legislation approved today is fiscally responsible. It pays for renewable energy tax incentives by repealing $18 billion in unnecessary tax subsidies for big, multinational oil and gas companies. The vote comes shortly after the big five oil companies recently reported record profits for 2007, with ExxonMobil earning $40.6 billion - the largest corporate profit in American history. While oil companies have profited, consumers have felt the pinch. Today, a gallon of gasoline in Mankato, Minnesota costs $3.06.

"Every day, families across Minnesota are feeling the pain at the gas pump and home heating oil costs are skyrocketing. All the while, big oil companies are making billions of dollars and receiving handouts from the government. It simply isn't fair," added Rep. Walz. "We can do better by creating great jobs, protecting the environment and leveling the playing field for renewable energy by ending the tax breaks for big oil. This legislation almost seems too good to be true, but the good news is that this is a reality and today it will pass the House."

Tax Incentives for Renewable Energy to Spur Green Jobs and American Energy Independence

* Includes over $8 billion in long-term clean renewable energy tax incentives for electricity produced from renewable resources, including wind, solar, geothermal, biomass, hydropower, ocean tides, and landfill gas. The bill also includes $2 billion in new clean renewable energy bonds for electric cooperatives and public power providers to finance facilities that generate electricity from these renewable resources. These provisions are critical to creating tens of thousands of jobs and planned renewable energy projects that could power electricity for up to
12 million homes. [America Council on Renewable Energy, 2/11/08]

* Helps working families reduce their fuel bills by providing between $4,000 and $6,000 in tax credits toward the purchase of fuel-efficient, plug-in hybrid vehicles

* Helps State and local governments finance a variety of environmental conservation and efficiency programs by providing up to $3.6 billion in interest-free financing.

* Provides tax incentives to help homeowners and businesses reduce their energy costs by investing in energy efficient property. The bill would encourage manufacturers to build affordable appliances that push the boundaries of efficiency and help finance more energy efficiency improvements to homes and commercial buildings.

* Contains incentives to expand production of homegrown fuels, including creating a new production tax credit for cellulosic ethanol produced from domestic, non-food feedstocks such as switchgrass, corn stover, cereal straws, sugar cane, sawdust and paper pulp, as well an extension of the tax credits for biodiesel and renewable diesel. It also includes incentives to increase the number of E-85 pumps for consumers with flexfuel vehicles.

Uphold Fiscal Responsibility

* Invests in Renewable Energy Without Adding to the Deficit. To pay for renewable energy incentives, the bill repeals $18 billion in unnecessary tax subsidies for big, multinational oil and gas companies. The provisions of H.R. 5351 are narrowly targeted toward the large integrated oil companies and those doing business overseas.

* Scaled-Back Provision Closing Manufacturing Tax Subsidy for Large Oil Companies. The bill includes a scaled-backed provision that would eliminate a subsidy in the 2004 international tax bill (H.R. 4520) for major integrated oil and gas companies. Small, independent oil and gas companies would continue to benefit from the deduction at the current rate.

* Closes Foreign Tax Loophole for Large Oil Companies. To ensure that oil and gas companies are paying their fair share of taxes, the bill closes a tax loophole identified by the non-partisan Joint Committee on Taxation that allows big oil and gas companies operating overseas to game the system by understating their foreign oil and gas extraction income.

* From Hummer to Hybrid. It also closes the "Hummer" Tax Loophole, fixing a serious mistake that currently encourages taxpayers to buy heavy, gas-guzzling luxury SUVs instead of lighter, fuel-efficient vehicles for business use. The provision would not negatively affect businesses that rely on SUVs for legitimate business purposes, such as farmers and ranchers.