H.R. 5351 would amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation.
Detailed Summary
<b>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</b>
Renewable Energy and Energy Conservation Tax Act of 2008 - Amends Internal Revenue Code provisions relating to renewable energy sources and energy conservation.
<b>Title I: Production Incentives</b> - (Sec. 101) Extends through 2011 the tax credit for the production of electricity from renewable resources (e.g., wind, closed and open-loop biomass, geothermal energy, small irrigation power, municipal solid waste, and qualified hydropower). Imposes a limit on such tax credit based upon investment in renewable resource facilities placed in service after 2009 in lieu of the current phaseout provisions for such credit.
(Sec. 102) Includes marine and hydrokinetic renewable energy as a renewable resource for purposes of the tax credit for producing electricity from renewable resources.
(Sec. 103) Extends through 2016 the energy tax credit for investment in solar energy and fuel cell property.
Allows an offset against alternative minimum tax liability for certain energy tax credit amounts.
Increases to $1,500 the credit limitation for fuel cell property.
Allows public electric utility property to qualify for the energy tax credit.
(Sec. 104) Allows a new tax credit for investment in qualified new clean renewable energy bonds.
(Sec. 105) Extends through 2009 the special rule for the treatment of gain from electronic transmission transactions by a qualified electric utility (as defined by the Federal Power Act).
(Sec. 106) Extends through 2014 the tax credit for residential energy efficient property expenditures. Increases to $4,000 the maximum amount of such credit for solar electric property. Includes residential small wind equipment and geothermal heat pumps as property eligible for such credit. Allows credit amounts to offset alternative minimum tax liability.
<b>Title II: Conservation</b> - <b>Subtitle A: Transportation</b> - <b>Part I: Vehicles</b> - (Sec. 201) Allows a new tax credit for the production of plug-in hybrid vehicles. Defines "qualified plug-in hybrid vehicle" as a motor vehicle weighing less than 14,000 pounds that meets certain emission standards under the Clean Air Act and that is propelled to a significant extent by an electric motor that draws electricity from a rechargeable battery.
(Sec. 202) Extends through 2010 the tax credit for installing nonhydrogen alternative fuel refueling property. Increases the rate of the tax credit for alternative fuel refueling property expenditures from 30 to 50% and raises the dollar limit for commercial properties to $50,000.
(Sec. 203) Modifies the definition of "passenger automobile" for purposes of limitations on depreciation and expensing of vehicles to include any four-wheeled vehicles that are designed primarily to carry passengers over public streets, roads, or highways and that are rated at not more than 14,000 pounds gross vehicle weight.
<b>Part 2: Fuels</b> - (Sec. 211) Extends through 2010 the income and excise tax credits for biodiesel (including agri-biodiesel) and renewable diesel used as fuel. Eliminates the requirement that renewable diesel be made using a thermal depolymerization process.
Modifies the definition of "renewable diesel" for purposes of the income and excise tax credits for biodiesel and renewable diesel used as fuel to exclude any fuel derived from coprocessing biomass with a feedstock that is not biomass.
(Sec. 212) Disqualifies foreign-produced fuel that is used or sold for use outside the United States for the income and excise tax credits for alcohol, biodiesel, renewable diesel, and alternative fuel production.
(Sec. 213) Allows an alcohol fuels tax credit for the production of qualified cellulosic alcohol fuel.
<b>Part 3: Other Transportation Incentives</b> - (Sec. 221) Allows employees to exclude reimbursements for bicycle commuting expenses from gross income.
(Sec. 222) Allows a tax credit against payroll liabilities of New York Liberty Zone governmental units (i.e., New York State, the City of New York, or any agencies or instrumentalities thereof) for expenditures involving transportation infrastructure projects in or connecting with the New York Liberty Zone.
<b>Subtitle B: Other Conservation Provisions</b> - (Sec. 231) Authorizes the issuance of qualified energy conservation bonds to finance local government conservation and greenhouse gas reduction projects. Imposes a national limitation of $3.6 billion on the issuance of such bonds.
(Sec. 232) Extends the tax credit for nonbusiness energy property expenditures through 2009. Includes energy-efficient biomass fuel stoves as property eligible for such tax credit.
(Sec. 233) Extends the tax deduction for energy efficient commercial buildings through 2013.
(Sec. 234) Revises the amounts allowable under the tax credit for energy efficient appliances produced after 2007 (i.e., dish washers, clothes washers, and refrigerators) and extends such credit through 2010.
(Sec. 235) Allows a five-year recovery period for the depreciation of qualified energy management devices. Defines " energy management device" as a device that measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day and allows for the exchange of electricity-usage information and data.
<b>Title III: Revenue Provisions</b> - (Sec. 301) Denies the tax deduction for income attributable to domestic production of oil, gas, or any related products for major integrated oil companies. Reduces such deduction by 3% for taxpayers other than major integrated oil companies after 2009.
(Sec. 302) Revises the method for calculating foreign oil and gas extraction income and foreign oil related income to require a valuation prior to a specified fair market value event.
(Sec. 303) Increases by 3% the estimated tax payment of certain large corporations (assets of not less than $1 billion) in the third quarter of 2013.
<b>Title IV: Other Provisions </b>- <b>Subtitle A: Studies</b> - (Sec. 401) Directs the Secretary of the Treasury to enter into an agreement with the National Academy of Sciences (NAS) for a review of the Internal Revenue Code to identify the types of tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects. Requires NAS to reports its findings to Congress not later than two years after the enactment of this Act. Authorizes appropriations for such study in FY2008-FY2009.
(Sec. 402) Directs the Secretary, in consultation with the Secretaries of Agriculture and Energy, and the Administrator of the Environmental Protection Agency (EPA), to enter into an agreement with NAS to produce an analysis of scientific findings relating to current and future biofuels production and the domestic effects of a dramatic increase in such production activity. Requires NAS to submit an initial report to Congress on its findings within three months after enactment of this Act and a final report within six months.
<b>Subtitle B: Application of Certain Labor Standards on Projects Financed Under Tax Credit Bonds</b> - (Sec. 411) Applies labor standards under the Davis-Bacon Act to projects financed with new clean renewable energy bonds.
Status of the Legislation
Latest Major Action: 2/28/2008: Referred to Senate committee. Status: Received in the Senate and Read twice and referred to the Committee on Finance.
Points in Favor
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Points Against
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Visitor Comments
Cam
Terrific Idea, keep the renewable energy and energy conservation incentives moving.
Morganm Mghee
The $18B is in the form of subsidies being paid by taxpayers to the oil companies. That means on top of the $40 Billion in PROFITS exxon made last year, which came from record per gallon gas prices, they are receiving our tax dollars! that $18 Billion is the amount over 10 years. These private companies have enjoyed special status and incentives for the last 10 years, their profits prove the subsidies are no longer neccessary and perverse.
Waiting to incorporate new, efficient cleaner technologies will only cost more the longer we take to begin. The sooner we find and perfect another way, the sooner we won't have to worry about the cost of oil/gas. These companies have had the last 10 years to plan and prepare for this day, they chose instead to stay the course and reap the benefits of cash. It is time to say thank you to the American people, pull their lobbyists and the flow of money on this issue and let the subsidies lapse. Morganmghee.spaces.live.com
Jason
This is just government taking more taxes from big buisness. What has government done for the average person? Governemnt should get out of the way a let buissness do what it does. Exxon paid 1.45 trillion in taxes and had made 650 billion in profit since the early 80's. At least Exxon has given me reliable source of energy to get me to work and heat my house. Government on the other hand keeps taking what I make and own. However, this is classic liberalism/socialism/communisim = wealth redistribution = higher unemployment = government regulation = less freedom. We are on the road to serfdom.....
steve
get government out of big business...fine...then lets end the subsidies...that's government involvement
Liz
Go Steve! I agree. By the way, I have an even more reliable source of energy for my house--captured greenhouse gases. And I use my own two feet to get to work. A true miracle!
Vickie
PLEASE DO NOT SUPPORT THIS BILL UNLESS THE "CLEAN COAL" PROVISIONS ARE REMOVED! There is no such thing as "clean coal;" take it from someone who lives in West Virginia, where mountains are blown up, streams poisoned, and billions of gallons of toxic sludge sit in impoundments.
Paula
Has ANYONE considered that increased taxes on gas companies computes as HIGHER PRICES AT THE PUMP!!??! Not paying enough already? Are you serious? I lived in CA for 15 years...they would vote for more taxes on their gasoline...then they have the audacity to complain that they are paying one to two dollars more per gallon than the rest of the country.
I have heard on the radio that this bill also exempts Citgo from incurring this tax. (That's Dictator Hugo Chavez's money cow in America, by the way.)
I have not found the specific text in the bill yet, but will continue to dig. WAKE UP PEOPLE...ANYONE THINKING THEY NEED MORE TAXES SHOULD MOVE TO EUROPE!
Or maybe follow Liz to a third world country...captured greenhouse gases = cow manure burning on the open firepit in our houses for warmth...and walkiing to work? Not sure that would work in America. Miraculous indeed.
Marianne
Hang on to your purses, or just through them out. Subsidies do not work. Check out the milk subsidies, and guess who profits, the big mega farms in Holland. Just like this one is going to profit Chavez. My Democratic Senator claims this is nonpartisan. Check the vote
Wayne
We either continue to fund the fledgling biodiesel industry or we stay dependent on foreign oil. The oil shieks and the large oil companies will lobby hard against this one.
Jim
Spot on Wayne.
I am a biodiesel producer. Algae is coming (we are researching it too) but it is 2 to 3 years off. Algae biodiesel is the "only possible alternative to replace the existing petroluem oil supplies" http://www1.eere.energy.gov/biomass/pdfs/biodiesel_from_algae.pdf
We cannot survive until then without the excise tax credit that provides a somewhat level playing field for competing with "big oil" and their subsidies.
We are not the food price problem. I sell at "rack price" = 71% of what you see at the pump. This equals approximately $3.20/gallon. CBOT price of soybean oil www.cbot.com is .578/lb x 7.69 lb/gallon = $4.45/gallon. Can't make $3 stuff out of $4 stuff.
Give us a chance to give you domestically produced biodegradable fuel, that works in our existing infrastructure and emits 78% less CO2.
Support this bill.
Wendy
I'm looking at replacing my central a/c and furnace this year. I'd like to go with a high SEER but they are much more expensive. Trying to hold off til this gets renewed. Amazing to see that 100% of the republicans voted against the bill - oh yeah, I forgot, per the republicans, man's contribution to Global warming is fiction. Can you see me shaking my head in disbelief? Anyone know if it is passed, will it be retroactive?
go solar
What is wrong with walking to work? I wish I could! What is wrong with Europe? They think we all suck because we can't get our act together! So we pay a little more at the pump... maybe it will inspire people to drive more fuel efficient cars! Personally, I would really like to be able to get some money back for doing a little more for the environment.
Scott
If one reads all the comments below, it only demonstrates what a vast array of morons live in this country. Don't you people understand the Bill? Anyone who has posted a comment on this blog should read the bill, then post a new comment. For about 70 % of you, you should begin your thread with the title - "Yes - I guess I am a moron..."