Industry Opposes Tax Credit Bill

The chemical industry is cautioning lawmakers against supporting legislation that would provide an array of tax credits to encourage the production and use of vehicles powered by natural gas as a way to reduce oil imports. “American manufacturers need affordable natural gas to compete successfully in global markets,” says Calvin M. Dooley, president and CEO of the American Chemistry Council, an industry trade association. “Federal incentives for natural gas vehicles could divert much-needed supplies from manufacturers, threatening competitiveness and jobs. Congress should not subsidize some natural gas uses at the expense of others,” he says. The Natural Gas Act (H.R. 1380), sponsored by Reps. John Sullivan (R-Okla.) and Dan Boren (D-Okla.), has 180 bipartisan supporters and is being pushed by billionaire oilman T. Boone Pickens. The bill would extend and expand tax credits for five years and would make some regulatory changes to promote the use of vehicles fueled by natural gas and help build more refueling stations.