Senate and House conferees are expected to complete their negotiations on a broad corporate tax cut bill this week, but it’s unclear whether all or part of the $17-$18 billion in energy tax breaks and credits will survive.

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

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 this week.

While Wicker is fairly sure that the bill will clear conference, he said he’s doubtful that the House and Senate will 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.

Thomas’s discussion draft of the bill last week did not include the $17-$18 billion, 10-year package of energy tax incentives. Grassley filed an amendment last Thursday to restore most of the energy tax package to the bill, Congressional Green Sheets reported. House Ways and Means and Senate Finance staffs are working to include some of the proposals in the chairman’s mark, which will be presented at the conferees’ second meeting scheduled for late Monday (Oct. 4).

Grassley’s amendment “is a good sign that Senate conferees are going to dig in and fight for the energy tax package,” Wicker told NGI. Rep. Joe Barton (R-TX), chairman of the House Energy and Commerce Committee and conferee, reportedly has filed an amendment to reserve the option to offer the House energy bill (H,R. 6) for inclusion in the final conference report.

“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 [last Wednesday’s] initial meeting of the conference, a number of other conferees on both sides of the aisle.”

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 NGI, June 14).

The Senate energy 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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