PTP Provision Included in House and Senate Energy Legislation
September 15, 2008
The proposal developed by NAPTP to add income from transportation and storage of renewable fuels to qualifying income for PTPs is now in the tax provisions slated for energy bills to be considered in both the Senate and the House this week.
On September 11
Senate Finance Committee Max Baucus (D-MT) and Ranking Member Charles
Grassley (R-IA), the Chairman and ranking minority member of the Senate
Finance Committee introduced new energy tax legislation, S. 3478, to be
considered as on the Senate floor the week of September 15 as an
amendment to a larger energy bill. The legislation, which is entitled
the "Energy Independence Act of 2008," contains in section 209 NAPTP's
proposal to add income from transportation and storage of renewable
fuels to qualifying income for PTPs.
The legislation also extends a number of alternative energy tax incentives and adds new incentives, including new tax credits for combined heat and power systems, nuclear power equipment, and carbon capture and sequestration. These tax benefits are paid for by repealing the section 199 manufacturing and production credit, creating a 13% excise tax on oil and natural gas from the Outer Continental Shelf, changing the taxation of foreign oil and gas income and extending and increasing the oil spill excise tax.
The House will similarly be considering comprehensive energy legislation, and on September 15 the House Ways and Means Committee released an outline of the energy tax provisions to go into that bill. Like the Finance Committee bill, the Ways and Means package extends expiring provisions and provides tax incentives (approximately $18 billion worth) for investment in renewable energy, carbon capture and sequestration demonstration projects, energy efficiency and conservation, and pays for them by repealing the section 199 manufacturing and production credit and changing the taxation of foreign oil and gas income. The PTP provision is among the tax incentives for "Transportation and Domestic Fuel Security."
Prospects for passage of the
legislation are highly uncertain, as there continue to be sharp partisan
differences in both the House and the Senate over the revenue offsets
and non-tax issues such as offshore drilling. Nonetheless, each
time the PTP provision is included in energy legislation, it gains
additional momentum and acceptance.
Click here for the Ways and Means Committee outline.
Click here for the Baucus-Grassley press release with an outline of the bill's provisions
Click here for the text of the bill
Click here for Senator Baucus' introductory statement