HOUSE PASSES BILL CONTAINING UP TO $6.5 BILLION IN NEW TAXES ON DOMESTIC ENERGY PRODUCERS

Washington, Jan 18, 2007 - "Our nation needs to reduce its dependence on imported oil, to increase domestic production, and to promote the development and use of alternative energies," said Rep. Cliff Stearns (R-Ocala). "This bill will raise energy prices for American consumers, stifle domestic energy production, and increase our dependence on foreign sources of energy."

The House approved today H.R. 6, the CLEAN Energy Act, which would repeal tax incentives for domestic oil and natural gas production. H.R. 6 singles out oil and natural gas companies from receiving tax relief enacted in 2005 that allows companies to write off a percentage of their costs from domestic manufacturing, production, construction, and extraction. This tax relief was enacted to encourage more domestic manufacturing and development, and the retention and creation of American jobs.

"These new taxes, more than $6.5 billion, on domestic energy producers will be passed along to consumers," explained Stearns. "Not only will this lead to higher gas and home heating prices, it will move investments and job creation overseas. If we are serious about energy security and making energy more affordable, we need to encourage domestic production, and promote clean and renewable fuels." In 2005, Stearns helped write the Energy Policy Act of 2005, which was enacted. That law encourages clean coal technology and other fuels such as biomass, wind, solar, and hydroelectricity; and it promotes energy conservation.