Tag Archives: Club for Growth

Senator Jim DeMint (R-S.C.) introduced the Energy Freedom & Economic Prosperity Act (EFEPA) in February and then offered his bill as an amendment to the Transportation Bill last week. Had it passed it would have eliminated all energy tax credits not only for wind, solar, biomass and biofuels but for coal, oil and natural gas as well. Said DeMint:

Our tax code is riddled with loopholes for special interests and it’s time to end this corporate welfare that is hurting our economy. When Washington picks winners and losers in the energy market, those with the highest paid lobbyists win while the small businesses and taxpayers lose. We shouldn’t favor ethanol over hydrogen, nuclear over natural gas, or oil over renewables. The free market economy works when everyone competes on a level playing field and works to provide Americans with the best, lowest-cost products.

The original bill and the amendment were supported by a raft of free-market advocates including Americans for Prosperity, Club for Growth, Heritage Action and the National Taxpayers Union. In a letter to its members FreedomWorks urged them to pressure their senators to vote for the amendment, noting that “these subsidies have long distorted the market for new sources of energy by allocating funding to the technologies with the best lobbyists instead of those with the most value to consumers.”

According to the U.S. Energy Information Administration’s study of subsidies to the energy industry completed last July, the federal government in 2010 gave out $37 billion of taxpayer monies, more than double the amount given away in 2007. Biofuels received $6.6 billion, wind received $5 billion, solar and biomass each received $1.1 billion, coal received $1.3 billion while oil and gas received subsidies of