Tax News

CCH (cch.taxgroup.com) reports:

  Senate Majority Leader Harry Reid, D-Nev., told lawmakers on September 8 that he plans to take up energy legislation, which includes tax incentives, during the week beginning September 15 if the chamber can complete work by that time on a crucial defense spending bill. The move to energy legislation is also a high priority for Republicans who said Congress needs to act quickly on finding a solution to the energy crisis.

  Reid said he expects the Senate to vote on several comprehensive energy bills, including a measure offered earlier by Senate Finance Committee Chairman Max Baucus, D-Mont., that would extend renewable energy, energy efficiency and advanced vehicle tax incentives and offset the cost by eliminating oil company subsidies and closing royalty relief loopholes. A new bipartisan bill, the New Energy Reform Bill of 2008, which has already garnered 16 co-sponsors, also would extend and expand renewable energy and advanced alternative fuel vehicle tax incentives. The measure would provide consumer tax credits of up to $7,500 per vehicle to purchase advanced alternative fuel vehicles (primarily nonpetroleum fuels) and up to $2,500 to retrofit existing vehicles with advanced alternative fuel engines.

  Reid said he is also open to open to a vote on a Republican offering that would open up all coastal areas to drilling at the states' requests, except for the eastern Gulf of Mexico, which stays closed until 2022. It also would close the London loophole and requires index trader and swaps dealers to report their energy-commodity transactions. "So far, Congress has been unable to come together on a comprehensive solution to our nation's energy crisis, but the book hasn't closed yet on the 110th Congress," said Senate Minority Leader Mitch McConnell, R-Ky., on the Senate floor. "There is still time to act on this issue."

  By Jeff Carlson, CCH News Staff