Daily Tax Update - July 27, 2010

LEVIN RELEASES DRAFT ENERGY TAX BILL: Yesterday, House Ways and Means Committee Chairman Sander Levin released a draft energy bill, the Domestic Manufacturing and Energy Jobs Act of 2010. The $25 billion draft bill did not include offsets. Levin said, “We want the focus now to be on those provisions, so everybody knows what's in them. Then we'll talk about the payfors.” Repealing tax breaks for oil and gas companies or a tax on Superfund sites could be used as possible offsets to fund the bill.

According to Levin, the bill:

  • “Includes $6.5 billion investment tax credits for taxpayers that re-equip, expand or establish domestic manufacturing facilities that produce advanced energy equipment. These tax credits will encourage more than $22 billion of investment in domestic manufacturing facilities and will build upon the $2.3 billion of investment tax credits that were provided in the Recovery Act.
  • Encourages domestic demand for renewable energy equipment and energy efficient equipment by (1) continuing successful programs such as the direct payment in lieu of tax credits program (aka “Section 1603” program); (2) providing a long-term extension of the placed in service date for offshore wind and geothermal facilities; and (3) providing State and local governments with financing tools to encourage energy-efficiency and renewable energy on residential property. 
  • Provides tax incentives for renewable fuel production and technologies to decrease US dependence on foreign oil. In particular, tax incentives for large natural gas and electric/hybrid vehicles to transition the country’s diesel fleet to cleaner domestic sources of fuel. Additionally, the draft would continue tax incentives for domestically produced biofuels such as ethanol and biodiesel."
  • A summary of the bill can be accessed here.   

TAX BILLS INTRODUCED JULY 26TH:
H.R.5856: To amend the Internal Revenue Code of 1986 to provide for an investment tax credit for waste-to-energy facilities.
Sponsor: Rep Doggett, Lloyd [TX-25] (introduced 7/26/2010)     Cosponsors (3)

H.R.5857: To amend the Internal Revenue Code of 1986 to decrease the top marginal corporate rate to 28 percent and to prevent corporations from exploiting tax treaties to evade taxation of United States income.
Sponsor: Rep Djou, Charles K. [HI-1] (introduced 7/26/2010)      Cosponsors (None)

H.R.5864: To amend the Internal Revenue Code of 1986 to allow a credit against income tax for qualified equity investments in certain small businesses, and for other purposes.
Sponsor: Rep Sestak, Joe [PA-7] (introduced 7/26/2010)     Cosponsors (None)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
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