Gregg: Senate Bipartisan Tax Relief Package Gives Economy Boost, Develops Clean Energy, Fixes Misdirected Tax Glitch
Sep 23 2008
Washington—United States Senator Judd Gregg (R-NH), ranking member of the Senate Budget Committee, today praised Senate passage of H.R. 6049, the Tax Extenders Act, a tax package that includes among its many provisions: a fix for the alternative minimum tax (AMT) that protects middle-income taxpayers from paying taxes intended only for the rich; tax relief for families and businesses to revitalize the economy; and a variety of new tax incentives to encourage the development of clean energy resources and new alternative energy technologies.
Senator Gregg stated, “Given the recent dire news of the economy and financial markets, this tax-relief package was a must-pass bill by the Senate for the benefit of the taxpayer, the economy, and the environment. This bill addresses the pressing needs of our nation, and I’m pleased that we’ve finally addressed a fundamental flaw in the AMT that puts millions of middle-income families in danger of excesses in tax payments that Congress never intended to collect. We’ve also included a hefty tax-incentive package that strongly supports clean and renewable energy production and new technologies that will put America on an aggressive path towards energy independence and a cleaner environment. It was a priority that we address the extension of expiring tax-cuts to help families’ budgets and offer relief for small businesses that are so critical to the economic growth of our economy and essential that the Senate pass this bipartisan bill prior to adjournment.”
The bipartisan energy tax package provides $17 billion in incentives to promote clean and renewable energy production, research and development projects for advanced technology vehicles, and energy conservation and efficiency initiatives. The legislation extends the renewable energy production tax credit for wind and refined coal for one year and other sources for two years, creates new tax credits for carbon capture, promotes more extensive use of biomass and cellulosic ethanol, and extends the investment tax credit for solar energy for 8 years. Additionally, the bill establishes a new tax credit for qualified plug-in electric vehicles and extends the tax credit for biodiesel production to help producers create fuel from biomass materials. The bill also encourages greater energy efficiency and conservation through incentives for energy efficient home improvements and purchasing energy efficient appliances. A provision, similar to one Senator Gregg has co-sponsored previously, would also provide a 10 percent tax credit for the purchase of energy efficient wood stoves.
Sen. Gregg stated, “This bipartisan tax package is win-win-win for the American people. It’s a pro-growth, pro-middle class, and pro-environment package that will help America take great strides toward energy independence by boosting critical tax incentives for more clean and renewable energy. New Hampshire has become a leader in the nation in environmentally friendly energy production by passing its own renewable portfolio standard and being home to cutting edge ‘green’ energy companies. This measure will provide financial incentives for Granite State’s renewable energy industry, as well as for clean and renewable energy projects across the country. I’m also pleased that this measure will ensure that many middle-class households are not hit with a huge alternative minimum tax bill, will help our nation’s teachers do their jobs, and will assist families coping with rising college tuition costs. It also includes a provision that I’ve long supported: reducing wasteful tax breaks for the oil and gas industry. I hope that my House colleagues will stop playing political games, take up this important bipartisan legislation, and get it to the President’s desk in a timely manner.”