House Dems Pushing Renewable Energy Tax Credits

Congressional Democrats plan to introduce a bill this week to shift tax credits from large oil and gas producers to renewal energies. Leading Democrats, such as Nancy Pelosi, Steny Hoyer and Charles Rangel, want less dependence on foreign petroleum if energy sources such as biodiesel, solar, water and wind can be encouraged. Estimated amount shifted will be close to $18 billion. Certain tax breaks for large petroleum companies will be eliminated or reduced; one example--an increase in the amortization period on geological expenditures.

Must give the House Democrats some credit here--clearly, there needs to be expanded efforts to find a way to make the U.S. less dependent on petroleum. At the same time, the attempt to reduce oil company profits by cutting out tax breaks probably is naive--in all likelihood, increased income tax expense will proabaly be passed on to consumers at the pump.