Rep. Kelly Introduces the Powering American Jobs Act

Dec 3, 2014 Issues: Economy and Jobs

WASHINGTON — U.S. Representative Mike Kelly (R-PA) – a member of the House Ways and Means Committee – issued the following statement today regarding his introduction of H.R. 5775, the Powering American Jobs Act of 2014, in the House of Representatives. The bipartisan legislation would extend certain expiring tax incentives for the energy sector, including propane and biodiesel provisions, for at least two years. It is being co-sponsored by Rep. Ron Kind (D-WI). A copy of the bill can be viewed here.

Statement by Rep. Kelly:

“The most important issue to Western Pennsylvanians is job creation, and that remains my number one focus in Washington. This bipartisan piece of legislation will grant much-needed tax certainty and fairness to energy providers important to our District and help them create more jobs while bringing heating costs down. While the temporary provisions within this bill are necessary, Congress must continue to work toward long-term tax reform that makes these extensions permanent. To this day, the United States remains the only nation in the world that allows important parts of its tax code to expire on a regular basis. Going forward, we must pave the way for a better course. When it comes to encouraging economic growth, American businesses both large and small should have the long-term certainty they need to plan, invest, expand, and hire more hardworking Americans.”

Statement by Rep. Kind:

“This commonsense, bipartisan legislation helps create jobs and makes smart investments in alternative fuels to help us become more energy independent. To bolster economic growth, we need to keep looking for ways to provide employers with stability and predictability so they can hire new workers in Wisconsin and around the nation.”

Statement by Dan Gilligan, President, Petroleum Marketers Association of America (PMAA):

“I would like to thank Reps. Kelly and Kind for their efforts to retroactively extend the $1-per-gallon biodiesel blender's tax credit while bringing fairness to all fuel appliance credits under 25(c) of the tax code. The Kelly-Kind bill makes important technical corrections to 25(c) so oilheat consumers can upgrade to the most efficient appliances available in today’s market that will conserve energy and reduce their monthly heating oil bills.”

NOTE: The Powering American Jobs Act of 2014 includes the following tax extension provisions:

Extension and Modification of Credit for Nonbusiness Energy Property.  The bill extends for two years, through 2015, the credit for nonbusiness energy property with certain modifications.  This provision allows a credit of 10 percent of the amount paid or incurred by the taxpayer for qualified energy improvements, up to $500.  A two-year extension of this provision.

Extension of Tax Incentives for Alternative Fuel and Alternative Fuel Mixtures (including liquefied hydrogen).  The bill extends through 2015 the $0.50 per gallon alternative fuel tax credit and alternative fuel mixture tax credit. This credit can be claimed as a nonrefundable excise tax credit or a refundable income tax credit for the blending and sale of alternative fuel mixtures including compressed or liquefied natural gas, ethanol, biofuels, and liquefied hydrogen.  A two-year extension of this provision.

Extension of Credit for Alternative Fuel Vehicle Refueling Property (including hydrogen property).  The bill extends for two years, through 2015, the 30% investment tax credit for alternative vehicle refueling property, up to $30,000.  Eligible refueling property includes fuel pumps for ethanol, biodiesel, liquefied hydrogen, and compressed or liquefied natural gas.  A two-year extension of this provision.

Extension of Tax Incentives for Biodiesel and Renewable Diesel.  The bill extends for two years, through 2015, the $1.00 per gallon tax credit for biodiesel, as well as the small agri-biodiesel producer credit of 10 cents per gallon. The bill also extends through 2015 the $1.00 per gallon tax credit for diesel fuel created from biomass.  A two-year extension of this provision.

Equalization of Excise Tax of Liquefied Natural Gas and Liquefied Petroleum Gas.  The bill would amend propane’s excise tax provisions in I.R.C. Sections 4041 and 4081 in order to provide Federal excise tax equivalence to gasoline.  A permanent provision.