[Congressional Record Volume 154, Number 153 (Thursday, September 25, 2008)]
[Extensions of Remarks]
[Pages E1971-E1972]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   COMPREHENSIVE AMERICAN ENERGY SECURITY AND CONSUMER PROTECTION ACT

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON-LEE

                                of texas

                    in the house of representatives

                      Tuesday, September 16, 2008

  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in strong support 
of H.R. 6049, the Renewable Energy and Job Creation Tax Act of 2008. 
This legislation is a timely, necessary, and comprehensive approach to 
addressing our energy crisis. I support efforts to extend the expiring 
business tax provisions. Opponents of H.R. 6049 are concerned that the 
House Amendment to the Senate Amendment to this bill would permanently 
increase taxes

[[Page E1972]]

on businesses to pay for a temporary, one-year extension of expiring 
business tax provisions. I fail to see the merits of the opponent's 
contention and I believe that the benefits far outweigh any potential 
costs. Given the circumstances, the American economy is spiraling 
downward, energy prices are high, and unemployment is high, some kind 
of relief must be granted. To the extent that this body can grant some 
kind of relief, it is to be supported. I urge my colleagues to support 
this legislation. I am committed to working with industry actors to 
make sure that some balance is struck in the future.
  The following are provisions that are widely supported by various 
interest groups:
  Extension of Expired and Expiring Business Tax Provisions--
Legislation is urgently needed to extend critically important 
provisions. A number of provisions--such as the R&D credit, the 
election to deduct state and local general sales tax, and the railroad 
track maintenance credit--already have expired. Others--such as the 
exception under subpart F for active financing income and the look-
through treatment of payments between related controlled foreign 
corporations (CFCs) under the foreign personal holding company rules--
expire at the end of this year.
  Clean Energy Tax Incentives--The extension of the clean energy tax 
incentives. These incentives will go a long way toward the development 
of the renewable and alternative energy technologies essential to 
America's energy future. The Chamber believes it is critical to promote 
the responsible use of all energy sources. To reach this goal, 
government and business should support investment in new technologies 
that expand alternative energy and enable traditional sources of energy 
to be used more cleanly and efficiently.
  Some business interests have concerns with revenue offset provisions 
included in the House Amendment to the Senate Amendment to H.R. 6049, 
including those related to:
  Punitive Oil and Gas Taxes--Businesses claim that Congress must be 
mindful of the crosswinds hitting the American economy from the 
financial sector to the housing sectors. Many believe tax increases on 
the oil and gas industries are out of sync with an American economy 
showing great demand for increased domestic energy production, which 
could provide the opportunity for the energy industry to add a 
significant number of high-wage jobs. Many are concerned with 
provisions that would freeze the section 199 deduction for oil and gas 
companies. This change would discourage energy investment, resulting in 
the loss of jobs, a decrease in the supply of oil and gas, and an 
increase in the costs for businesses that rely on oil and gas.
  Many businesses interest groups are also concerned with the proposed 
modification of the foreign tax credit rules for oil and gas companies, 
as this change would place domestic firms at a competitive disadvantage 
to foreign oil and gas manufacturers.
  FUTA Surtax--Some businesses are concerned with the proposed 
extension of the FUTA surtax, which was added to the tax code in 1976 
as a temporary measure and should have been allowed to expire long ago, 
having outlived the purposes and term that served as the rationale for 
its enactment.
  Nonqualified Deferred Compensation--Some acknowledges that tax 
deferred plans used by offshore partnerships are created as part of 
complex legal agreements between managers and limited partners who are 
usually passive foreign investors. Foreign investors utilize these 
deferral arrangements to better align the interests of the manager with 
the investors. Altering these economic arrangements could cause these 
investments to migrate to other countries.
  I will end, as I began. I believe that this bill is solid and makes 
great strides toward providing relief to the American people. I support 
this bill, and I am committed to working with industry and businesses 
to make sure that their concerns are heard and addressed.
  I urge my colleagues to support this bill.

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