Pelosi, Senate Finance members probe BP’s $10 billion tax credit plan

Various House lawmakers
recently introduced at least three separate bills that would prevent BP from
claiming a $9.9 billion reduction in taxes. The bills offered by Reps. Gerry
Connolly (D-Va.), Raul Grijalva (D-Ariz.) and Eliot Engel (D-N.Y.) deny
deductions based on cleanup and damages costs.

“This simple bill ensures
that oil companies are not paying for the spill with one hand while robbing
American taxpayers with the other. It will close a loophole that would
otherwise allow BP and other companies to escape responsibility to pay for
cleanup of their own oil spills,” states a letter that Connolly and co-sponsor
Rep. Betsy Markey (D-Colo.) are circulating to colleagues to corral support.

BP’s planned deduction stems
from the $32.2 billion it announced in late July would be set aside for its
spill expenses, including roughly $3 billion in response costs to date and
future costs that include the $20 billion fund being established for damages
claims.

Two members of the Senate
Finance Committee said Tuesday they are reviewing the tax credit as well.

“We are looking at that,”
said Sen. Jeff Bingaman (D-N.M.), who declined to provide further details.

“There has been a lot of
discussion about that,” said Sen. Debbie Stabenow (D-Mich.). “In my judgment we
need to seriously look at that.” Sen. Bill Nelson (D-Fla.), another member of
the Finance panel, last month urged
committee leaders to probe BP’s tax plan.