As Americans race to finalize their individual tax returns, it's timely to see a U.S. Senate committee taking input on bipartisan tax reform policies in advance of possible work on tax reform. NRDC submitted a set of recommendations today that emphasize a simple goal: energy tax policy should promote clean resources that advance our national interest by reducing dependence on the dirty energy sources of the past.
NRDC's letter to the Senate Committee on Finance emphasizes the critical importance of continuing to utilize the tax code to promote clean energy and efficiency technologies that reduce pollution and drive innovation -- as well as jettison costly and wasteful tax provisions that promote polluting energy sources that undermine our national goals.
Just a few examples would include:
- The expired credit for the construction of energy efficient new homes (45L), which provided a $2,000 tax credit to builders who build new houses that optimize energy use.
- The Business Energy Investment Tax Credit (ITC), which is integral to growth and cost reductions for renewable energy like solar and offshore wind power. The ITC is critical to launching the U.S. offshore wind industry--our largest untapped clean energy resource.
Unfortunately, several clean energy tax provisions have expired, which creates uncertainty for businesses hesitant to make investments with no assurance of rebates or credits.
In our view, any energy tax policy should be judged by its contribution to meeting our obligation to reduce climate-altering carbon pollution and pass on a cleaner, healthier, safer planet to future generations.
Clean energy tax policy has already proven effective in helping shape investments that create jobs, support local communities, save businesses and consumers money, and help ensure America remains a global leader in clean technologies in the 21st century.
Here is NRDC's letter to the committee: NRDC Comment on Bipartisan Tax Reform