Democrats in the Senate and House are trying again to pass a bill that will eliminate tax cuts to oil companies in order to promote spending for renewable energy and building efficiency. However, the proposition has not been easy to get past Congressional Republicans. Luckily, the House’s vote this week is likely to succeed.
The bill would get rid of $17.6 billion in tax breaks to oil and gas businesses over a span of 10 years. The tax breaks would then be transferred to consumer hybrid cars, and corporate wind, solar, and other renewable energies. New York transportation would also receive tax credits for work on the areas destroyed by September 11.
These breaks are key for maintaining the development of renewable energy, especially wind energy, which has high start up costs and needs government aid to get large projects running.
“It’s not because it changes the economics. It’s that it completely makes it impossible to know how to finance the project not knowing what the variables are, ” said
Michael Eckhart, president of The American Council on Renewable Energy.
The potential problem? Republicans who say that the way to lower skyrocketing oil prices is to stimulate production with tax breaks and incentives.