FOR IMMEDIATE RELEASE: July 7, 2008
CONTACT: Matt Mackowiak
Sen. Hutchison: Refiners Tax Credit to Become Reality
Temporary Rules Issued by Treasury for Refinery Expansion Tax Credits
WASHINGTON -- U.S. Senator Kay Bailey Hutchison (R-TX), Texas’ senior senator, today announced that incentives for increasing domestic refinery capacity will soon be made available in light of skyrocketing gasoline, oil and diesel prices.
Sen. Hutchison included a provision in the Energy Policy Act of 2005 (EPACT), which provides a 50 percent tax deduction for domestic refineries that increase existing capacity by five percent or more daily.
“Providing real incentives for American companies that want to expand existing refinery capacity will help consumers who are facing skyrocketing energy prices and ensure that we have adequate capacity for our domestic needs,” said Sen. Hutchison. “Expanding refining capacity will alleviate prices at the pump by increasing our fuel supply.”
On May 28 Sen. Hutchison sent a letter to Treasury Secretary Henry Paulson urging action on this issue. Late last week, the U.S. Treasury Department issued temporary regulations (T.D. 4912) and a notice of proposed rulemaking (REG-146895-05) for tax incentives for the expansion of refineries by U.S. companies. The temporary rules take effect July 9, the date of the publication in the federal register.
Sen. Hutchison sent a similar letter to the Treasury Department in April 2007 when gasoline was $2.86 a gallon. Today, the national average is $4.11 a gallon.
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