Chairman Tiberi and Chairman Boustany Announce Joint Hearing on Energy Tax Policy and Tax Reform
In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing. A list of invited witnesses will follow. BACKGROUND: As part of the Ways and Means Committee’s tax reform agenda, the Committee and its Subcommittees intend to hold hearings on how comprehensive tax reform would affect particular sectors of the economy. Given the critical economic, security, and environmental considerations surrounding the energy sector, Chairman Camp requested that Chairmen Tiberi and Boustany begin with an inquiry into energy tax policy. The current tax code includes numerous provisions intended to advance various energy policy goals, including provisions dealing with production, efficiency, and conservation, and ranging from transportation fuels to electricity generation. There are three general views regarding energy tax policy. Some believe that many of these energy tax provisions are an effective and efficient way to advance important public policy goals. Others suggest that the current structure of energy tax incentives picks winners and losers, rather than applying technology-neutral tests that would encourage investment in the most promising technologies. Still others believe that the tax code should not subsidize energy at all, because doing so interferes with the free market and violates tax reform principles such as simplicity, fairness, and economic growth. The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) included several provisions intended to promote so-called “green” energy. Among these were the Nonbusiness Energy Property Credit, the Residential Energy Efficient Property Credit, and various Plug-in Electric and Alternative Motor Vehicle Credits. The Treasury Inspector General for Tax Administration (TIGTA) subsequently reviewed IRS’s effectiveness in identifying and preventing erroneous claims for these credits during the 2010 tax return filing season. TIGTA issued two reports on its findings, which included millions of dollars in erroneously claimed credits and a lax review process that resulted in credits successfully claimed by children, prisoners, and others who did not qualify. On April 6, 2011, Rep. John Sullivan (R-OK) introduced H.R. 1380, the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act of 2011. The bill currently has 183 bipartisan cosponsors, although a number of Members of Congress have removed their names as cosponsors. Referred primarily to the Ways and Means Committee, H.R. 1380 includes tax credits related to compressed and liquefied natural gas (CNG and LNG), including credits for the fuels themselves, credits for the purchase and production of vehicles powered by CNG and LNG, and credits for refueling property related to CNG and LNG. Whether such credits represent good energy policy or an intrusion into the free market has been the subject of vigorous debate. In announcing the hearing, Chairman Tiberi said, “Energy security and comprehensive tax reform are two of the most important priorities we can pursue to create jobs and ensure the long-term strength of the U.S. economy. As the committee with jurisdiction over energy tax policy, the Ways and Means Committee should examine whether there sometimes can be tension between these priorities, and how this Committee can design tax policies that achieve our energy security goals while also staying true to the principles of simplicity, fairness, and growth that drive the Committee’s tax reform agenda.” Chairman Boustany said, “With so much of our energy policy driven by the tax code, comprehensive tax reform needs to consider whether these tax incentives promote a sound energy strategy. This hearing will examine how IRS implements and enforces rules on energy credits, and it will explore the role of the tax code in energy policy. FOCUS OF THE HEARING: The hearing will focus on the questions of whether energy policy should be conducted through the tax code, and if so, how best to design provisions that advance the principles of both sustainable energy policy and tax reform. In asking these questions, the hearing will conduct oversight of the administration of certain existing energy tax provisions to determine whether they have been implemented efficiently and effectively. It also will consider how the specific case of H.R. 1380, the NAT GAS Act, stacks up against the principles of tax reform and sustainable energy policy. DETAILS FOR SUBMISSION OF WRITTEN COMMENTS: Please Note: Any person(s) and/or organization(s) wishing to submit written comments for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, https://waysandmeans.house.gov, select “Hearings.” Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.” Once you have followed the online instructions, submit all requested information. ATTACH your submission as a Word document, in compliance with the formatting requirements listed below, by the close of business on Wednesday, August 17, 2011. Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225-3625 or (202) 225-2610. FORMATTING REQUIREMENTS: The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines. Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below. Any submission or supplementary item not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee. 1. All submissions and supplementary materials must be provided in Word format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official hearing record. 2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee. 3. All submissions must include a list of all clients, persons and/or organizations on whose behalf the witness appears. A supplemental sheet must accompany each submission listing the name, company, address, telephone, and fax numbers of each witness. The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above. Note: All Committee advisories and news releases are available on the World Wide Web at http://www.waysandmeans.house.gov/.
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