Analysis of Five Selected Tax Provisions of the Conference Energy Bill of 2003

摘要

On January 29, 2004, Senator John Sununu requested that the Energy Information Administration (EIA) provide an assessment of certain tax provisions of the Conference Energy Bill (CEB) of 2003 (also known as the Energy Policy Act of 2003). He requested that five specific tax provisions be assessed regarding incremental energy production, changes in petroleum imports, and tax revenue losses. The five provisions are as follows: Section 45 Credit for Electricity Produced from Certain Sources; Credit for Electricity Produced from Advanced Nuclear Power Facilities; Amortization of Geological and Geophysical Expenditures Over 2 Years; Extension and Modification of Section 29 for Producing Fuel from Nonconventional Sources; Enhanced Oil Recovery Tax Credits This report responds to that request. Some of the tax provisions can be analyzed using the National Energy Modeling System (NEMS). In those cases, the impacts of the provisions are estimated by comparing the results of those provisions to the Reference Case of the Annual Energy Outlook 2004 (AEO2004). Where the provisions are not amenable to modeling using NEMS, a qualitative analysis is provided.