PRES WANTS PERMANENT PTC

Obama tax plan takes scalpel to oil tax breaks, boosts renewables
Andrew Restuccia, February 22, 2012 (The Hill)

"The Obama administration outlined a plan…to eliminate a slew of oil-and-gas industry tax breaks, while extending a key tax credit for renewable energy… in a broad corporate tax reform framework unveiled by the Treasury Department…

"The plan echoes President Obama’s longtime call to [cut $39 billion worth of tax breaks for oil and gas companies over a decade in his fiscal 2013 budget request because]… the industry receives preferential treatment…Among other things, the plan would repeal the expensing of intangible drilling costs and percentage depletion for oil and natural gas wells."

click to enlarge

"Obama’s plan to nix tax breaks for oil and gas companies faces major opposition from many Republicans, oil-state Democrats and the oil industry. Recent efforts to pass legislation to eliminate the tax breaks have fallen short…[It] is the latest indication that the president hopes to revive the yearlong fight over oil industry tax breaks, signaling the White House believes it’s a winning election issue…Republicans have ramped up attacks on Obama over his energy policies in recent months, pointing to rising gas prices…

"Obama’s tax framework also calls for making permanent the production tax credit for [each kilowatt-hour of electricity that is produced], which is set to expire at the end of the year…A study commissioned by the American Wind Energy Association, the wind industry’s trade group, says that expiration of the production tax credit could cost as many as 37,000 jobs… Republicans have attacked plans to extend the tax credit…[and called it] an unnecessary subsidy for ‘Big Wind.’"