Earlier this week we were hopeful that, after making it through the Way and Means Committee, the Energy and Tax Extenders Act of 2008 (H.R. 6040) would pass the full House.
On Wednesday the bill was approved in the House by a vote of 263–160. If the bill can pass the Senate, where it has been opposed in the past due to reductions in tax credits to oil and gas companies, incentives for wind, solar, and other alternative energy technologies (including carbon sequestration and “clean” coal) will be extended, helping to spur much needed investment and development in renewable energy.
This time around the bill does not have the reductions in tax credit for fossil fuel companies, but closes a tax loophole that will cost hedge fund managers millions of dollars. Many Republicans and the White House are opposed to closing that loophole. The Bush administration has threatened a veto.
If bill does not pass the Senate and the tax credits are allowed to expire at the end of this year, analysts estimate that up to 100,000 jobs and almost $20 billion in investment will disappear.