Today, Senate Finance Chairman Max Baucus released a tax reform discussion draft on energy which “focuses on streamlining energy tax incentives so they are more predictable and technology-neutral.”
Senator Baucus said, “Our current set of energy tax incentives is overly complex and picks winners and losers with no clear policy rationale. We need a system of energy incentives that is more predictable, rational, and technology-neutral to increase our energy security and ensure a clean and healthy environment for future generations.”
A report today said that Senator Baucus is expected to be nominated by the White House to serve as the next U.S. ambassador to China.
The discussion draft offers proposals to:
- “Establish a new, technology-neutral tax credit for the domestic production of clean electricity
- Establish a new, technology-neutral tax credit for the domestic production of clean transportation fuel
- Consolidate almost all of the existing energy tax incentives into these two new credits, with appropriate transition relief
- Provide businesses and investors with more certainty by making the new incentives long enough to be effective, but phasing them out once clearly defined goals have been met.”
The full staff discussion draft in legislative language can be found here.