ENERGY TAX REFORM AS NATIONAL ENERGY POLICY

The way Congress funds clean energy is a mess. Max Baucus thinks there’s a better idea.

Brad Plumer, December 19, 2013 (Washington Post)

"…[Senator Max Baucus (D-Montana) and Senate Finance Committee Chair unveiled energy tax reforms] to dump all 42 existing tax incentives for specific energy sources…[and] create two broad tax credits that would boost clean energy…Baucus's proposals aren't likely to become law anytime soon. But they could shape the debate over how Congress funds clean energy in the years ahead…[A]ny facility producing electricity that is at least 25 percent cleaner than the average for all electricity production facilities would receive a tax credit. The cleaner the facility, the larger the tax credit…[A]ny transportation fuel that is at least 25 percent cleaner than conventional gasoline will generally receive a credit. Again, the cleaner and more energy-efficient the fuel, the larger the credit…The oil and gas sector isn't happy about the prospect of losing incentives for exploration and drilling…[Baucus's proposal is] essentially a tax cut for some companies and not others. It might not be as effective [as a carbon tax, but is less likely to provoke a political backlash.” click here for more

from ACEEE (click to enlarge)

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