Washington (Nov. 18, 2003) -- The tax staff of the Senate Finance Committee and the House Committee on Ways and Means have completed a draft of the tax incentives title in the energy bill conference report. 

Several longstanding priorities are in the bill, including an extension of the wind energy production tax, and an income tax credit and excise credit for biodiesel fuel mixtures.  The tax credit applies to biodiesel made from vegetable oil, animal fats, recycled oils and other greases.

The legislation would also extend the tax credit for the production of electricity from biomass (organic material from plants), expand the definition of an eligible small ethanol producer so small cooperative producers of ethanol will receive the same tax benefits as large companies, and encourage the manufacture and use of super energy-efficient washing machines and refrigerators, with a tax credit for the production of those appliances.

Sen. Chuck Grassley, R-Iowa, chairman of the Committee on Finance, called the agreement on broad renewable energy tax incentives a victory for the nation's green energy supplies.

"It makes sense to use the tax code to develop alternative energy," Grassley said.  "Cutting taxes is an effective way to encourage positive, environmentally conscious ways to produce electricity and fuel.  This is a good, green energy tax package."

-- WebCPA staff

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