BAUCUS ANNOUNCES PLAN TO BOOST DOMESTIC ENERGY PRODUCTION
Senator's Bill Will Help Create Good-paying Jobs, Help With Rising Energy Costs
September 12, 2008
(Washington, D.C.) – Montana’s senior U.S. Senator Max Baucus today announced his plan that would boost domestic energy production, help lower energy costs and create good-paying jobs.
Baucus is chairman of the powerful Senate Finance Committee, which has jurisdiction over all taxes and revenue for the country. With energy costs on the rise and gas hitting $4 a gallon at the pump, Baucus is working on ways to spur domestic energy production and lower energy costs for Montanans and Americans.
At a press conference on Capitol Hill, Baucus introduced his plan to use tax incentives as a way to lessen the nation’s dependence on foreign oil, boost domestic energy production, and create more good-paying jobs.
“Folks in Montana and across the country are feeling the energy pinch – whether it’s at the gas pump or in their energy bills at home,” Baucus said. “It’s time that Congress does something to help. That’s why I introduced a common-sense plan to help ease the rising cost of energy, boost domestic energy production and create more good-paying jobs.”
Baucus’ Energy Tax Incentive Plan:
· Long-term Extension of Renewable Energy Production Tax Credit: This provision extends the tax incentive for the production of renewable energy – such as wind – for three years until December 31, 2011. Wind is a prevalent energy source in Montana. Projects like the Judith Gap Wind Farm have benefitted from this provision.
· New Clean Renewable Energy Bonds (“CREBs”): The bill authorizes $2 billion of new clean renewable energy bonds to finance facilities that generate renewable energy such as wind. Baucus wrote the CREBs program in 2005.
· Carbon Capture and Sequestration (CCS) Demonstration Projects: The bill provides $2.5 billion in new tax credits for the creation of advanced coal electricity projects and certain coal gasification projects that demonstrate the greatest potential for carbon capture and sequestration (CCS) technology. Of these $2.5 billion of incentives, $2 billion will be awarded to advanced coal electricity projects and $500 million will be awarded to coal gasification projects.
· Extension of Biodiesel Production Tax Credit; Extension and Modification of Renewable Diesel Tax Credit: The bill extends for three years (through December 31, 2011) the $1.00 per gallon production tax credits for biodiesel and the small biodiesel producer credit of 10 cents per gallon. The bill also extends for three years (through December 31, 2011) the $1.00 per gallon production tax credit for diesel fuel created from biomass.
· Plug-in Electric Drive Vehicle Credit: The bill establishes a new credit for qualified plug-in electric drive vehicles. The minimum amount of the credit is $2,500 and the maximum amount of the credit $7,500.
Baucus intends to move his energy tax package to full Senate for its consideration as soon as possible.
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