Senate Committee on Finance Chairman Baucus Releases Energy Tax Reform Discussion Draft for Comment

On December 18, 2013, Senate Finance Committee Chairman Baucus (D-MT) released an energy tax reform staff discussion draft and summary. Starting in 2017, it would create emissions-based tax credits for electric power and transportation fuels with the goal of simplifying and harmonizing the U.S. energy tax incentive structure while also restoring select incentives due to expire.  This issue brief summarizes Chairman Baucus' proposal, identifies specific areas of comment on which the Committee is seeking input, highlights the existing political dynamics affecting energy tax reform, and contains two appendices identifying the potential treatment of various projects under the proposed credits.