By a vote of 221-189, the House passed H.R. 2776, the Renewable Energy and Energy Conservation Tax Act of 2007. The Renewable Energy and Energy Conservation Tax Act of 2007 would accelerate the use of clean domestic renewable energy sources and alternative fuels. The bill provides longterm tax incentives encouraging the production of electricity from renewable energy - including energy derived from wind, solar, biomass, geothermal, river currents, ocean tides, landfill gas, and trash combustion resources. The bill also provides tax incentives for the production of renewable fuels such as cellulosic alcohol, biodiesel and renewable diesel.
To pay for these renewable energy and conservation incentives, the bill repeals approximately $16 billion in tax breaks for oil and gas companies that were given during an era of record profits. To ensure that oil and gas companies are paying their fair share of taxes, it closes a tax loophole that allows big oil and gas companies to game the system by understating their foreign oil and gas extraction income. It also closes the “Hummer” Tax Loophole, fixing a serious mistake that provides an extra tax incentive for businesses buying luxury SUVs, while exempting vehicles that are used for legitimate business purposes.