Baucus Energy Proposal Narrows 44 Tax Breaks to Two Expanded Credits

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Nearly all existing energy tax incentives would be eliminated and replaced with two new expanded credits for electricity and transportation fuel under a draft tax reform proposal by the chairman of the Senate Finance Committee.
The draft unveiled Dec. 18 by Sen. Max Baucus (D-Mont.) would replace the renewable energy production tax credit with a “tax credit for clean electricity,” with the value of the credit based on the power source's greenhouse gas emissions, a committee staffer told reporters during a briefing.
That credit, which would apply to newly constructed power sources including renewables, natural gas, nuclear and existing fossil-fired power plants retrofitted with carbon capture and sequestration technologies, would be available as a 2.23-cent-per-kilowatt production tax credit or as an investment tax credit of up to 20 percent, according to the staffer.