Biden Seeks $2.5T in Corporate Tax Hikes to Fully Pay for Infrastructure

by Naomi Jagoda (The Hill) ... The White House is also proposing to eliminate tax preferences for fossil fuel companies and expand tax incentives for clean-energy production. Treasury said in the report that its estimates indicate that eliminating subsidies for fossil fuel companies would raise federal revenue by more than $35 billion in the coming decade. READ MORE

Excerpt from Reuters: A Treasury Department office estimated that eliminating subsidies for fossil fuel companies would boost government tax receipts by more than $35 billion in the coming decade.

The “Made In America” tax plan did not specify which tax breaks for fossil fuel companies would be targeted. It said the subsidies undermine long-term energy independence and the fight against climate change and harm air and water quality in U.S. communities, especially communities of color.

One of the top fossil fuel breaks is called intangible drilling costs, which allows producers to deduct most costs from drilling new wells. The Joint Committee on Taxation, a nonpartisan congressional panel, has estimated that ditching it could generate $13 billion over 10 years.

The Biden tax plan would advance clean electricity production by providing a 10-year extension of the production tax credit and investment tax credit for clean energy generation, such as wind and solar power, and energy storage such as advanced batteries. It also creates a tax incentive for long-distance transmission lines to ease movement of electricity from clean energy generators.