The tax bill being brought up for vote in the House and Senate will add more than $1 trillion to the national debt in the next ten years. Overall, the energy sector comes out as a winner, keeping many lucrative tax breaks in place and ignoring new revenue raisers like a carbon tax.
Here’s a list of some tax preferences for energy industries NOT cut by the conference tax bill, and what the Joint Committee on Taxation (JCT) has estimated they cost under current tax rules.
The above represent provisions that were never on the table. In addition, there were some that were affected by either the House or Senate drafts of the tax bill, but were ultimately left untouched in the final bill. (See our separate analysis of these provisions HERE.) Below are estimates of what these provisions cost under current tax rules.
Energy Tax Subsidies Dropped from Final Bill
|Credit for production of electricity from renewable sources (aka, Renewables PTC) **||40,000|
|Credit for investment in renewable energy property (aka, Renewables ITC) **||20,000|
|Ability to form MLPs for oil, gas, & coal companies||9,900|
|Credit for electric drive vehicles||8,800|
|Enhanced oil recovery (EOR) credit||371|
|Oil and gas marginal wells credit||–|