Daily Tax Update - June 19, 2007

FINANCE COMMITTEE APPROVES ENERGY TAX PACKAGE: Today, the Senate Finance Committee approved a $28.5 billion package of energy tax incentives.  The energy tax provisions will be included in the broader Senate energy bill.

  • According to the Finance Committee, “There are several offsets in the final tax package, including a repeal of the manufacturing deduction for the major oil and gas companies’ domestic manufacturing activities.   As with other oil and gas incentives, the manufacturing deduction has been left intact for smaller independent domestic producers.  Other revenue raisers include a severance tax on the removal price of any taxable crude oil or natural gas produced from leased Federal lands in the Gulf of Mexico, simplifications to foreign tax credit rules for oil and gas activities, anti-fuel-fraud excise tax provisions, and an extension of the excise tax on oil which is dedicated to the trust fund used to cleanup oil spills.”
  • Senate Finance Committee Chairman Max Baucus (D-MT) said, “Paying as we go is a tough task, but Senator Grassley and I have developed offsets that are fair and economically sound. These offsets make sensible improvements to the tax code, close loopholes, and reduce fuel fraud.  And contrary to some criticisms, they should not reduce oil companies’ incentives to produce energy.”
  • The Joint Committee on Taxation’s description of the bill can be accessed via: http://www.house.gov/jct/x-33-07.pdf 

TAX BILL INTRODUCED JUNE 18TH
H.R. 2767: To amend the Internal Revenue Code of 1986 to provide a nonrefundable credit for the purchase of energy efficient tires.
Sponsor: Rep. Weller, Jerry [IL-11] (introduced 6/18/2007)      Cosponsors (None)
Latest Major Action: 6/18/2007 Referred to House committee

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As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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