April 22, 2005
House Passes Energy Bill with $8 Billion in Tax Breaks
The House of Representatives passed a new bill yesterday with $8 Billion of targeted tax incentives. The Energy Policy Act of 2005 includes provisions that would shorten recovery periods for natural gas pipelines and air pollution control facilities, ease restrictions for deductible contributions to nuclear decommissioning funds, exempt from tax-exempt bond arbitrage rules some prepayments for natural gas, and increase the limitation for the oil depletion deduction for small refiners.
The Bill also would provide limited incentives for residential solar- powered water heating, photovoltaics, and fuel cells and would create a 15 percent business tax credit for the purchase of fuel cells. Both individuals and businesses would be allowed to use several new energy credits against the alternative minimum tax. The Senate is expected to begin working on an energy bill within the next two weeks.
The House vote was 249 to 183 to pass the comprehensive energy bill, but only after narrowly overcoming a Democratic objection.
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