Oil companies tax cuts ditched for renewable energy aid

It looks like the US House of Representatives is going to be witness to an interesting bill this week, as the Democrats introduce the Renewable Energy and Energy Conservation Tax of 2008 (H.R. 5351).

Interesting not only for the pat on the head it will deliver to clean, renewable energy and energy efficiency companies but interesting because it will finance that tax break by repealing other tax breaks to big oil and energy companies, reportedly worth $18 billion.

I bet the Ewings are furious.

Speaker Nancy Pelosi, House Majority Leader Steny Hoyer, and Ways and Means Committee Chairman Charles B. Rangel have put out this statement on the matter:

“With the price of oil above $100 a barrel, this Congress is again taking action to reduce our dependence on foreign oil and support the domestic production of renewable energy. Next week, the House will vote on the Renewable Energy and Energy Conservation Tax Act to end unnecessary subsidies to Big Oil companies making record profits and invest in clean, renewable energy and energy efficiency.

“The bill extends and expands tax incentives for renewable electricity, energy and fuel, as well as for hybrid cars, and energy efficient homes, buildings, and appliances. It does not add to our deficit, but rather repeals $18 billion in tax subsidies for Big Oil companies. By strengthening our renewable energy sector, the bill will help create the next generation of good-paying, green collar jobs and bring down energy prices in the long term.

“Already pinched at the pump, American families are now feeling the effects of higher energy prices throughout the economy. This legislation is another critical step in a series of concrete actions this Congress is taking to address soaring energy costs, grow our economy and create new jobs, strengthen national security, and begin to reduce global warming.”