Senate Passes "Renewable Energy and Job Creation Act"
with PTP Provision by a Vote of 93-2
September 23, Updated September 24

On the afternoon September 23, the Senate passed the Renewable Energy and Job Creation Act (H.R. 6049), a long-awaited tax package containing extensions of expiring energy tax provisions and various other incentives for alternative energy, including NAPTP's proposal to expand the "qualifying income" definition under section 7704(D) to include the transportation and storage of renewable fuels.  The legislation also expands section 7704 to include transportation of industrial carbon dioxide (CO2).   The energy portion of the bill, originally a separate bill titled the ‘‘Energy Improvement and Extension Act’’ was folded into H.R. 6049, the extenders/AMT bill, during today's consideration.

H.R. 6049 as passed by the Senate also extends a number of other expiring tax benefits for individuals and businesses, including a one-year increase in the exemption amount for the alternative minimum tax (AMT).  In addition, it contains the Wellstone-Domenici Mental Health Parity and Addiction Equity Act and provisions for Midwestern, Hurricane Ike, and national disaster relief. 

The bill is a product of a long series of negotiations between the majority and minority leadership, in particular over how much of the cost of the tax benefits should be offset by revenue raising provisions.  The compromise reached is that the $120 billion legislation is partially paid for:  the $17 billion energy tax package is fully offset, while none of the AMT relief and the about half of rest of the bill are paid for.  Revenue raising provisions include a freeze in (but not repeal of) the Section 199 deduction, mandatory basis reporting by brokers for publicly traded securities, modification of tax provisions relating to foreign oil and gas income, a FUTA surtax, and extension and increased rate for the oil spill trust fund tax.

Action now moves to the House, which had been scheduled to consider new extender, AMT, and disaster relief proposals on September 24.   The PTP provision (without CO2) was scheduled to come to the floor as part of the House substitute for the Senate-passed H.R. 6049, which contains the extenders provisions but pays for them fully by extending them for one year instead of two.  Late this afternoon, it was announced that House consideration of H.R. 6049 will be postponed while the leadership of the House and Senate try to work out a deal.

 Related Links:

Click here for the revenue estimate for the energy tax provisions.

Click here for the revenue estimate for the rest of H.R. 6049 (before the energy provisions were folded in).

Click here for the Finance Committee press release and summary of H.R. 6049.