New Legislation Would Eliminate All Energy Subsidies

Rep. Mike Pompeo (R-KS) plans to introduce legislation next week to eliminate all tax incentives for renewable energies, advanced vehicles, and some for oil and nuclear, according to The Hill.

"The Solyndra scandal has demonstrated the danger of government interference in energy markets," he says in a letter he's circulating in the House to gain support for the bill. He calls it a reasonable approach to ending the decades-long practice of government trying to pick winners and losers.

He claims it would save $90 billion over the next decade.

The "Energy Freedom and Economic Prosperity Act" would repeal the following tax credits:

• Plug-In electric and fuel cell vehicles
• Alternative fuel and alternative fuel mixtures
• Cellulosic Biofuel Producer Credit
• Alternative fuel infrastructure
• Production Tax Credit for electricity produced from renewable sources, including wind, biomass and hydropower
• Investment Tax Credit for equipment powered by solar, fuel cells, geothermal or other specified renewable sources
• Enhanced oil recovery credit, and credit for producing oil and gas from marginal wells
• Advanced Nuclear Power Generation Credit
• Clean coal investment credits

"Changing the tax code to in effect raise taxes on companies creating these American jobs would be a mistake that would cost our economy exactly the sort of manufacturing jobs we need more of today," says Denise Bode, President of the American Wind Energy Association (AWEA).

While most experts believe new industries and technologies need government subsidies until they mature, some do believe that just leveling the playing field by eliminating all subsidies for all energy industries - including fossil fuels - would be just as helpful.

Source: Sustainable Business