Congress repeals oil company tax breaks

Manufacturing News, Source : The Manufacturer US
Zone : Energy business
Published : 19 Jan 2007 13:14

The US House of Representatives has passed legislation that repeals $7.6 billion in tax breaks.

House Speaker Nancy Pelosi has further proposed creating a select committee on energy independence and global warming, according to a Wall Street Journal story.

The bill would also set aside $6.3 billion in royalties from companies that pump oil and gas from publicly owned waters, to develop alternative energy projects and conservation technologies.

Democrat Nick Rahall of West Virginia said the bill "seeks to end the unwarranted tax breaks and subsidies that have been lavished on big oil companies." Opponents argue the bill penalizes domestic producers. Analysts see the legislation as a sign of tougher going for oil companies under a Democratic congress.

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