WASHINGTON – U.S. Representative Allyson Schwartz, a member of the Committee on Ways and Means, praised the Committee today for their action on the Renewable Energy and Energy Conservation Tax Act of 2007 (H.R. 2776).  This forward looking tax plan provides $16 billion in tax reductions and incentives aimed at increasing renewable energy production and expanding energy conservation efforts. The plan is paid for by repealing the massive tax giveaways to the oil and gasoline industry and by closing loopholes that the industry exploits.

“This is a dramatic new direction for United States energy policy. This plan begins to limit our dependence on foreign energy and it moves our nation toward a more innovative, conservation-minded approach to energy,” said Rep. Schwartz.

As a member of the Committee on Ways and Means, Schwartz was heavily involved in the drafting of the energy package and was able to successfully include several of her key legislative priorities. In addition, Schwartz led efforts to ensure the bill greatly expands efforts improving energy conservation.

Pennsylvania is a major beneficiary of this plan. The bill establishes a new category of tax credit bonds for green community programs and initiatives designed to reduce greenhouse gas emissions.  In addition, the plan includes a provision which will provide states the ability to offer families low-interest loans and grants for energy-efficient property and efficiency improvements their homes.  According to Committee staff estimates, Pennsylvania will be eligible for $245 million under these provisions.

Schwartz added, “I am proud of the leadership shown by Chairman Rangel and Chairman Neal in welcoming ideas from all members of the committee. Their openness and forward thinking approach to solving the challenges concerning energy policy is demonstrated in both the large details and the fine print of the bill, and I look forward to working with them to pass this plan.”

Several of the key elements of the plan were ideas proposed by Schwartz, and included at her and her colleagues’ direction.

·        A five-year extension of the energy efficient commercial buildings tax deduction

·        Modeled after Rep. Schwartz’s Buildings for the 21st Century Act (H.R. 539), this item extends the existing tax deduction for energy efficient commercial buildings for five years. The deduction provides an incentive of $1.80 per square foot to owners of new or existing buildings who make energy efficiency improvements that reduce the building’s total energy and power cost by 50 percent or more when compared with a specific industry standard. The tax deduction also makes available an incentive of $0.60 per square foot to building owners that make improvements to individual lighting, building envelope, or heating and cooling systems that meet target levels that reasonably contribute to an overall building energy savings of 50 percent if additional systems were installed.

·        Closing the SUV Tax Loophole

·        Closes a tax loophole that allows for tens of thousands of dollars in tax write-offs for only the largest luxury SUVs by fixing a serious mistake in the tax code that provides an additional tax incentive that supports only the luxury market of SUVs weighing over 6,000 lbs. It is estimated that closing this loophole will save taxpayers $786 million in the next ten years.

·        Modification and extension of energy-efficient appliance tax credits

·        Provides a tax credit for the production of super-efficient dishwashers, clothes washers, refrigerators and dehumidifiers. 

Speaker Pelosi has already announced plans to release a comprehensive energy package around July 4 and it is expected that Ways and Means energy bill will be a substantial component of that overall package.