NEWTON – Congressman Mike Pompeo has introduced legislation that would repeal certain energy tax subsidies – a move that is supported by some political advocacy groups yet has others in the renewable energy industry concerned.
The Energy Freedom and Economic Prosperity Act, which was officially introduced last week, would repeal all energy tax credits, including production tax credits for electricity generated from renewable sources, such as wind, biomass and hydropower. Tax credits for coal, solar and nuclear power also would be repealed.
Pompeo said his legislation could save up to $90 billion in energy tax subsidies over the next 10 years.
According to a statement from Pompeo’s office, “For decades, the federal government has provided billions of dollars in energy tax subsidies – which do nothing more than pick ‘winners and losers’ in the private marketplace. Wind, solar, biomass and other sources of energy all have shown great promise, but it is high time for energy sources to demonstrate their value on the open market, without government interference.”
The Energy Freedom and Economic Prosperity Act is designed to be revenue neutral, and provides for a comparable reduction in the corporate tax rate.