H.R. 6049

A part of George W. Bush’s election platform in 2004 included the support of tax incentives to increase the use of energy efficient products by the average American. Despite Bush’s keen interest in business and oil superseding any care for the environment, Congress and Senate have been rough-housing over H.R. 6049: Energy Improvement and Extension Act of 2008, which gives hope to the ardent polar-bear loving environmentalists among us.
H.R. 6049 amends the Internal Revenue Code of 1986. It creates new tax incentives for individuals and businesses to purchase renewable energy generation systems. Such systems take advantage of sustainable resources like wind and solar power, and hydroelectricity. H.R. 6049, sponsored by Rep. Charles Rangel (D-NY), was called the Energy and Tax Extenders Act of 2008 when introduced to Congress on May 14, 2008. It became the Renewable Energy and Job Creation Act of 2008 after debate and the passing of amendments. Shortly after its introduction the Act was passed in the House whereby it was introduced in the Senate where it languished for months.
Debate raged on in Senate with two failed cloture motions until the amended Act passed on September 23, 2008. Almost all Republican members of the House voted nay on both cloture motions. What became so controversial was the way in which the federal government would pay for the tax credits. Republicans balked at the initially proposed payment scheme, which involved cutting tax breaks given to oil companies in the 2005 energy bill to pay for the tax credits. The decision to cut tax breaks to have money for tax credit is a part of the “pay as you go” system of the House. However, President Bush, ever sensitive to oil company complaints, threatened to veto the Act if the revenue-raising conditions were not changed.
H.R. 6049 is important not only because it supports vital tax credits in order to promote investment in the renewable energy sector but also because it is a prime example of how the separation of power system created and defended by our great “thinker” James Madison functions. This system, which separates the legislative, executive and judicial branches of government into wholly autonomous institutions with different incentives, has lead (as Madison intended) to conflict and inefficiency as the branches can “check” one another slowing down and or halting legislation. Not to mention, Bush has failed to directly – as he will most likely not sign this Act before he leaves office - respond to any of his energy promises from his election platform of 2004. And where is the incentive to do so? The separation of power system leads to a shared responsibility. Bush can legitimately blame the Congressmen and Senators for their lack of efficiency in passing the legislation as opposed to himself.