February 8, 2008 / 10:51 PM / 11 years ago

House could weigh energy tax bill next week: aides

WASHINGTON (Reuters) - The U.S. House of Representatives next week could weigh legislation that extends tax incentives to use renewable energy sources like wind and solar and slaps new taxes on big energy companies, Democratic aides said on Friday.

Plans have not been finalized, but Democratic leaders including Speaker Nancy Pelosi want to show their displeasure at near-record high oil prices and record-setting profits recently reported by oil companies like Exxon Mobil Corp, aides said on condition of anonymity.

The legislation, which has not been unveiled, could be similar to a $21.5 billion tax package passed by the House in August but later dropped in order to secure Senate passage, aides said.

“House Democratic leadership is considering placing an energy tax package on the House floor next week,” one aide said, pointing to soaring oil industry profits.

U.S. oil companies have lobbied heavily against the tax package, and the White House has threatened to veto it if Congress passes it.

Exxon, the world’s largest oil company not run by a state, last week reported fourth-quarter net income of $11.66 billion, the highest-ever profit for a U.S. company, driven in part by crude oil futures near $100 a barrel.

Energy tax provisions passed by the House last year dangled new federal tax incentives for homeowners and businesses to buy new solar arrays, wind turbines and hybrid gas-electric cars.

To foot most of the price tag, the House bill repealed about $13 billion in tax subsidies extended to big oil and gas producers like Exxon, ConocoPhillips and Chevron Corp.

The original House tax provisions repealed Section 199 tax deduction for major integrated oil companies, generating $10 billion over 10 years, and dropped foreign income tax deductions for companies that produce oil and natural gas overseas, raising $3.19 billion.

It also ended tax break for companies to write off some exploration expenses over seven years, raising $4.1 billion in revenues.

Editing by Christian Wiessner

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