Bob Latta on Energy & Oil

Voted NO on tax incentives for renewable energy.

• Production Incentives: Extends through 2011 the tax credit for the production of electricity from renewable resources (e.g., wind, biomass, geothermal, and hydropower).
• Extends through 2016 the energy tax credit for investment in solar energy and fuel cell property.
• Allows a new tax credit for the production of plug-in hybrid vehicles.
• Extends through 2010 the tax credits for biodiesel (including agri-biodiesel)
• Allows an alcohol fuels tax credit for the production of qualified cellulosic alcohol fuel.
• Denies the tax deduction for income attributable to domestic production of oil, gas, or any related products.

SUPPORTER'S ARGUMENT FOR VOTING YES:Rep. MATSUI: Today's debate is about investing in renewable energy, which will chart a new direction for our country's energy policy. This bill restores balance to our energy policy after years of a tax structure that favors huge oil companies. Today's legislation will transfer some of the massive profits enjoyed by these oil companies and invest them in renewable resources that will power our economy in the future.

OPPONENT'S ARGUMENT FOR VOTING NO:Rep. SMITH of Texas: I oppose H.R. 5351. While it is well and good to encourage alternative energy development, Congress should not do so by damaging our domestic oil and gas industry. In 2006 all renewable energy sources provided only 6% of the US domestic energy supply. In contrast, oil and natural gas provided 58% of our domestic energy supply. The numbers don't lie. Oil and natural gas fuel our economy and sustain our way of life.

Furthermore, almost 2 million Americans are directly employed in the oil and natural gas industry. Punishing one of our Nation's most important industries does not constitute a national energy policy.

LEGISLATIVE OUTCOME:Bill passed House, 236-182