Democrats on the House Ways and Means Committee introduced two pieces of legislation Thursday to provide tax credits for clean energy manufacturing and renew the Build America Bonds program.
H.R. 6182: The American Advanced Energy Manufacturing Jobs Act of 2012, introduced by Rep. Mike Thompson, D-Calif., extends and expands the 48C Advanced Energy Manufacturing Tax Credit. The bill would uncap the credit for certain advanced manufacturing—solar, fuel cell and battery—and provide a $3 billion capped credit for other manufacturing. H.R. 6206: The Build America Bonds Act, introduced by Rep. Richard Neal, D-Mass., would help finance state and local capital projects, including schools, transportation infrastructure, and public safety facilities and equipment, which build infrastructure and create jobs.
The American Advanced Energy Manufacturing Jobs Act and the Build America Bonds Act are the sixth and seventh measures introduced in recent weeks as part of House Democrats’ No Excuses agenda as they try to encourage Republicans to act on measures to spur job growth. Other bills in the package include the Wind Powering American Jobs Act, the Hire Now Act, Invest in America Now Act, Investing in American Innovation Act of 2012, and The Bring Jobs Home Act.
“These are proven programs that are vital in our effort to rebuild America’s infrastructure—and economy,” said Ways and Means ranking member Sander Levin, D-Mich., in a statement. “The 48C Advanced Energy Manufacturing Tax Credit provides a direct incentive to manufacture advanced energy products like solar panels and wind turbines here in the United States and keeps the American renewable energy industry globally competitive. Renewing Build America Bonds will provide the financing necessary for state and local governments to rebuild crumbling infrastructure and schools. There is no excuse to delay action.”
The American Advanced Energy Manufacturing Jobs Act of 2012 is offset by repealing two provisions relating to major integrated oil companies. It would modify the rules that allow oil companies a foreign tax credit against their U.S. taxes to the extent that it pays income tax to a foreign government. The bill would also eliminate the expensing of intangible drilling costs.
The Build America Bonds program was created in 2009 by the American Recovery and Reinvestment Act and expired at the end of 2010. The bill restores BABs and makes them permanent. For 2012, the subsidy rate for the bonds is set at 32 percent. The subsidy rate is reduced by one percentage point each year until it reaches a permanent rate of 28 percent in 2016. BABs spur job creation and unleash private-sector investments by helping state and local governments finance infrastructure projects—building schools, hospitals, transit systems, and water systems. This bill is offset by repealing the Section 199 manufacturing deduction for major integrated oil producers.
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