House Dems seek to stop $10B BP tax credit

Two House Democrats — Eliot Engel (D-N.Y.) and Raul Grijalva (D-Ariz.) — introduced separate bills Friday that would prevent BP from claiming a nearly $10 billion tax credit for its oil-spill response costs.

The bills are just one of several political attacks aimed at the embattled oil giant. The House on Friday passed a bill that prevents BP from obtaining new offshore leases for years to come.

“Claiming billions of dollars in losses from this spill is an affront to the hard-working people of the Gulf Coast who have lost their livelihood,” Engel said in a prepared statement.

Grijalva, meanwhile, is circulating a letter to colleagues touting his bill.

“As recently noted in numerous press accounts, tax law allows for BP or any oil company to deduct expenses related to oil spills, reducing their tax liability and effectively making taxpayers subsidize the clean up,” it states. “I believe that BP and other oil companies responsible for oil spills and incidents at offshore oil facilities should not be allowed to receive a tax break to pay for these accidents.”
 
BP is cutting its tax bill by taking a $32.2 billion charge to its accounts this year. It announced last week the funds are being set aside for various spill-related costs.

Sen. Bill Nelson (D-Fla.) is pressing for a Finance Committee probe of the tax credit.