Tax News

CCH (cch.taxgroup.com) reports:

  The House passed the American Clean Energy and Security Bill of 2009 (HR 2454), a comprehensive energy measure designed to combat global warming by capping the amount of greenhouse gas produced by American businesses and consumers. The measure, which passed by a vote of 219 to 212 on June 26, includes few tax provisions since House Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., decided against convening his committee to make changes to the bill.

  The measure includes a provision to modify the earned income tax credit by increasing the phaseout amount from $5,280 to $11,640 for taxpayers without qualifying children, effective after December 31, 2011. That provision was included in a 310-page amendment that Democratic leaders added to the bill in the early hours of June 26. The bill also includes a provision to allow the Treasury to transfer money from the general fund to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to offset any changes in benefit costs and tax revenues caused by the energy measure.

  House Minority Leader John Boehner, R-Ohio, criticized the legislation, saying it allows the federal government to impose new regulations and programs that will drive up the cost of gasoline, food and electricity. This over-intrusive energy measure would drive millions of jobs overseas to other countries that have less strict environmental regulations, he said. Rep. Earl Blumenauer, D-Ore., said the bill puts a mechanism in place to rein in global warming and create capital that can be invested in renewable energy sources from the wind and sun.

White House

  President Obama hailed House passage of the energy bill, saying it was a historic action that would create millions of new jobs, reduce U.S. dependence on foreign oil and limit the release of dangerous pollutants.

  By Stephen K. Cooper and Paula Cruickshank, CCH News Staff

Tax Section of Amendment to American Clean Energy and Security Act of 2009, HR 2454

Statement of Administration Policy on HR 2454