WASHINGTON, Jan. 4 (UPI) -- A Democratic bill in the U.S. House of Representatives would revoke billions in oil drilling incentives and tax breaks for development of new energy sources.
Congressional sources said the tax breaks would be paid for by the incentives rollback and an increase in federal royalties paid by oil and gas companies for offshore production, The Washington Post reported Thursday.
Majority Leader Rep. Steny Hoyer, D-Md., said the incentives targeted by the Democrats were part of a 2004 tax cut championed by U.S. President George Bush. Democratic lawmakers said the repeal of the cuts for oil and gas companies would raise $5 billion.
Hoyer said Democrats are also looking toward forcing companies to pay royalties on Gulf of Mexico tracts leased in 1998 and 1999; a move lawmakers estimate would generate $9 billion to $11 billion. The U.S. Interior Department previously said the leases on the tracts inadvertently avoided royalty payment provisions once oil prices surpassed certain benchmarks.
