Witnesses Say Tax Code Buttresses Energy Policy, but Reforms Needed

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

The tax code remains an important driver of energy policy, but witnesses testifying before a panel of House tax writers explore a number of improvements that could foster innovation, investment, and growth. The witnesses largely identify improvements that could overhaul, rather than supplant, the policies found within the tax code. They present their ideas at an extensive joint hearing helmed by the Ways and Means Oversight and Select Revenue Measures subcommittees, which separately address budgetary constraints on the tax administration of energy credits. A House tax writer voices concern that hundreds of millions of dollars in proposed budget cuts could further impede IRS's ability to administer tax credits, particularly in the energy arena. Rep. Lewis, the ranking member on the House Ways and Means Oversight Subcommittee, says that significantly reduced funding levels in the House GOP fiscal year 2012 proposal (H.R. 2434) could only limit the service's already limited resources to examine claims after dispensing credits.