Yesterday, the Senate started debating a corporate tax bill that includes a $13 billion energy tax package with provisions for renewable energy, alternative fuels, energy efficiency and energy production.
The restart of the on-again, off-again debate on the underlying bill marks the fourth time the Senate has tried to take up the legislation over the past two months. The bill repeals the Foreign Services Corporation/Extraterritorial Tax Income Act that was declared illegal by the World Trade Organization, replacing the act with a new set of benefits for manufacturers and exporters.
Senate Energy and Natural Resources Committee Chairman Pete Domenici attached the energy tax language, which closely resembles the energy tax measure approved by the Senate Finance Committee a year ago, to jump-start the fortunes of his comprehensive energy bill. But if last week is any indication, the energy bill is on life support following a failed attempt to invoke cloture and end debate on the policy portion of Domenici's bill.
That vote called into question whether energy legislation will be completed during this shortened election year, with many sources now predicting the issue will have to return next session, assuming Congress has the will to revisit energy following several years of paralysis on the matter.
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