The Senate Finance Committee held a hearing today on Reforming America’s Outdated Energy Tax Code, led by chairman Ron Wyden (D-OR).
“It’s past time to replace today’s crazy quilt of more than 40 energy tax incentives with a
modern, technology-neutral approach,” said Wyden at the start of the hearing, adding that the disparity in how the tax code treats energy sources needs to end. “Traditional sources benefit from tax incentives that are permanently baked into law. But clean energy sources are stuck with stop-and-go incentives that have to be renewed every few years.”
The main goal of the hearing is to focus on extending the dozen or so tax incentives for alternative energy sources such as advanced biofuels, wind, and solar.
“The title of the hearing is right,” said Advanced Ethanol Council Executive Director Brooke Coleman. “Investors are highly sensitive to protections offered by tax law, and today’s energy tax regime drives investment away from viable petroleum alternatives like cellulosic biofuels because oil tax breaks are richer and permanent. The short term fix is extending recently expired and existing tax incentives for clean energy this year, to buttress against those offered to fossil fuels permanently. But any broader discussion about America emerging as the leading energy innovator in the world starts and ends with the federal tax code. It simply won’t happen without serious energy tax reform.”
Among those testifying at the hearing today was former Sen. Don Nickles (R-OK), now a lobbyist who has represented several energy companies, who spoke against continuing wind energy tax incentives.