On February 2, U.S. Senators Jim DeMint (R-SC) and Mike Lee (R-UT) introduced S. 2064, the Energy Freedom and Economic Prosperity Act (EFEPA), which would repeal all energy specific tax credits. EFEPA repeals all tax credits for renewable and conventional energy sources and requires a corresponding reduction in the corporate tax rate, making the legislation revenue neutral. Assuming these tax credits are continuously extended, the bill’s sponsors say that the legislation would eliminate nearly $90 billion in energy subsidies over the next 10 years. U.S. Rep. Mike Pompeo (R-KS) introduced a companion bill (H.R. 3308) in the House of Representatives in November.
The legislation would:
- Repeal credit for alcohol fuel, biodiesel, and alternative fuel mixtures.
- Repeal credit for certain plug-in electric vehicles.
- Early termination of credit for qualified fuel cell motor vehicles.
- Repeal of alternative fuel vehicle refueling property credit.
- Repeal of credit for alcohol used as fuel.
- Repeal of credit for biodiesel and renewable diesel used as fuel.
- Repeal of enhanced oil recovery credit.
- Termination of credit for electricity produced from certain renewable resources.
- Repeal of credit for producing oil and gas from marginal wells.
- Termination of credit for production from advanced nuclear power facilities.
- Repeal of credit for carbon dioxide sequestration.
- Termination of energy credit.
- Repeal of qualifying advanced coal project.
- Repeal of qualifying gasification project credit.
- Repeal of American Recovery and Reinvestment Act energy grant program.
At time of press, the complete text of S. 2064 was not available; however, click here to download H.R. 3308.
