Washington, DC – Today, Representatives Diana DeGette (D-CO) and Ed Markey (D-MA) introduced a bill to repeal $2.734 billion in tax cuts and subsidies contained in the Energy Policy Act of 2005.  Their bill follows through on President Bush’s call to Congress to repeal “unnecessary tax breaks” to energy companies.

“Repealing the billions of dollars in tax breaks for companies like Exxon-Mobil is the first sensible thing President Bush has called for on energy,” said Representative DeGette.  “Exxon Mobil just posted another multi billion dollar quarterly profit at the same time my constituents are going broke filling up their gas tanks.  Repelling these tax cuts is the right thing to do.”

On Monday, President Bush said: “Record oil prices and large cash flows also mean that Congress has got to understand that these energy companies don't need unnecessary tax breaks…”  The Energy Policy Act of 2005 provided $2.734 billion in tax incentives to oil and gas companies; the DeGette-Markey Energy Fairness Act bill would repeal those giveaways.

“Subsidizing energy companies to drill is like subsidizing fish to swim," said Representative Markey.  "The Republicans need to stop subsidizing the oil companies -- an overfed pod of Petroleum Whales -- with tax giveaways and start helping consumers and small businesses that are being crushed by their failed energy policy."

Representatives DeGette and Markey introduced their bill on the same day that Exxon-Mobil announced that its profits climbed 6.9 percent, breaking a first- quarter record by reaching $8.4 billion profit.

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The President Calls On Congress To Repeal Certain Tax Breaks That Are Unnecessary For Energy Companies.
With oil prices at record levels, energy companies have large cash flows - and energy companies should reinvest their profits into expanding refining capacity, researching alternative energy sources, developing new technologies, and expanding production. Record oil prices and large cash flows also mean that energy companies do not need unnecessary tax breaks like the "geological and geophysical expenditure" depreciation acceleration provision in the Energy Policy Act of 2005. This unnecessary tax break allows energy companies to rapidly depreciate costs related to oil exploration. The President also calls on Congress to repeal the Energy Policy Act provision subsidizing energy companies' research into deepwater drilling. The President is looking forward to Congress taking about $2 billion of these tax breaks out of the budget over a 10-year period of time.
www.whitehouse.gov/infocus/energy

President’s Remarks
http://www.whitehouse.gov/news/releases/2006/04/20060425.html

Energy Bill
The Energy Policy Act of 2005 contained more than $2.175 billion in tax breaks to the oil and gas companies (Title III).
http://www.taxpayer.net/energy/pdf/hr6finalanalysis.pdf