Senate and House lawmakers earlier this week kicked off negotiations on a broad corporate tax cut bill that in the end could include energy tax breaks and credits of up to $17-$18 billion.

The likelihood that House-Senate conferees will complete their negotiations before Congress is due to adjourn on Oct. 8 is “pretty good,” said Bill Wicker, a spokesman for the Senate Energy and Natural Resources Committee.

“It’s achievable,” he said. House Ways and Means Committee Chairman Bill Thomas (R-CA), chairman of the conference committee, and Senate Finance Committee Chairman Chuck Grassley (R-IA) have put this on an “expedited schedule” to be completed next week.

While Wicker is fairly sure that the bill will clear conference, he said he’s doubtful that the House and Senate would have enough time to pass the corporate tax measure before adjournment. Wicker told NGI that he believes a vote may be delayed until Congress returns for an “expected” lame duck session in mid-November.

Will the entire $17-$18 billion energy tax package, which the Senate passed but the House did not, survive conference? “I think there will be some energy tax provisions that get out of conference,” Wicker said.

“I hope that we can, on a bipartisan basis, include a strong package of energy tax incentives in the final conference report,” said Sen. Jeff Bingaman (D-NM), ranking Democrat on the Senate Energy Committee and a conferee. “This is a priority for me and, judging from today’s [Wednesday’s] initial meeting of the conference, a number of other conferees on both sides of the aisle.”

The conferees are expected to meet again late Monday, Wicker noted.

The Senate approved the multi-billion energy tax package last May on the coattails of the corporate tax bill (S. 1637). The House passed its corporate tax cut bill in June, but without the large energy tax breaks (see Daily GPI, June 8).

The Senate tax package offers incentives for the development of an Alaska gas pipeline, Section 29 tax credits for unconventional oil and gas production, a new credit for oil and gas production from marginal wells, accelerated depreciation for gas gathering lines, and expensing of geological and geophysical costs, as well as a number of other initiatives for renewable fuels, alternative vehicles, conservation and energy efficiency, and electricity.

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