US HoR votes to repeal O&G tax breaks

The
US
House of Representatives has voted to repeal $US18bn (?9bn) of tax breaks
for oil and gas producers and use the savings to fund tax incentives for
wind-power projects, solar panels and more energy-efficient cars.

Under the bill, Congress will extend tax credits through to 2011 for newly
built wind farms and other facilities which generate power from renewable
sources such as landfills. The government estimates the cost at $US6.6bn over 10
years, making it the most expensive tax break in the legislation, CCMoney.com
reports.

The bill faces opposition in the Senate and a White House veto threat, but it
gave House Democrats an opportunity to promote renewable energy as an
alternative to high-priced oil and to highlight the profit boom in the oil
industry driven by rising prices.

Republicans said they supported extending tax credits for renewable energy
investments which expire at the end of 2008. But they complained taking away tax
breaks for oil companies would drive production overseas, to less stable
countries, and make it harder for US companies to compete in a global economy.

Further reading:

UK’s oil industry plea for more tax breaks

Read
the story in CNNMoney.com