US lawmakers approve tax credits extension for sustainable energy
WASHINGTON (Bloomberg) — The US House of Representatives approved extensions to tax credits due to expire this year for wind, biomass and solar-power facilities in the face of a veto threat by Bush administration officials.
The panel approved $18 billion in energy credits as part of a larger tax package by a 263-160 vote this week. The measure would extend solar energy tax credits for six years, credits for production of electricity from wind turbines for one year and biomass facilities for three years.
"The only people who don't know that you need to have a diverse energy policy is the President and some of my colleagues here," said House Democratic Caucus chairman Rahm Emanuel, of Illinois.
The White House veto threat handed down on Wednesday takes exception to the measures to pay for the tax extensions. They are paid for by closing loopholes for hedge-fund managers and corporate executives who seek offshore tax havens and by delaying tax breaks for foreign-interest payments.
"The administration does not believe that efforts to avoid tax increases on Americans need to be coupled with provisions to increase revenues," according to a statement from the White House Office of Management and Budget.
Senate Republicans may seek items that aren't in the House bill when the Senate takes up the measure next month, including Alternative Minimum Tax relief. Three previous efforts to pass extensions of renewable tax credits were defeated in the Senate because of opposition to new taxes in those measures on oil companies.
The White House statement objected to the fact that the bill doesn't include Alternative Minimum Tax relief.
If the bill gets bogged down in the Senate, or is rejected by President George W. Bush, supporters will likely seek a one-year extension before it expires in December.