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NEMA Tax Reform Proposal

Letter as submitted to the U.S. Senate Committee on Finance

January 29, 2014

Honorable Max Baucus, Chairman
Committee on Finance
United States Senate
Washington, DC 20510        

Re: Comments on December 18, 2013 Energy Tax Reform Discussion Draft

Dear Mr. Chairman:        

We compliment you and the Committee for taking on the immensely important challenge of comprehensive tax reform. Anticipating this effort, on November 9, 2012, the NEMA Board of Governors – on behalf of the more than 400 member companies of NEMA and the electrical and medical imaging industries – adopted a policy supporting corporate tax reform and a system that is “predictable, efficient and has rates that are comparable to those of other advanced economies” – achieving this by broadening the tax base and lowering the corporate income tax rate.

If the Committee deems it appropriate to broaden the tax base and retain a limited number of high priority incentives – which seems to be the current policy direction -- we strongly support your inclusion of technology-neutral incentives to increase energy security and reduce emissions.

At the same time, we believe that achieving the goals of energy security and reduced emissions must include incentives for energy efficiency. The United States currently wastes more energy than it consumes, making energy efficiency an essential part of any technology-neutral package aimed at reducing emissions and increasing energy independence. Put simply, the energy we don’t use is the cleanest and cheapest form of energy. In fact, as the attached analysis explains, energy efficiency incentives compare favorably with the cost of clean energy production incentives.

We therefore urge the Committee to include the attached technology-neutral energy efficiency tax incentives in any legislative package that is offered for Finance Committee consideration. In addition to achieving your goals of reducing emissions and improving energy security, energy efficiency technologies will boost economic productivity and competitiveness, and mitigate outages after major storms.

Attached are a detailed explanation of the energy efficiency incentives package we propose for inclusion in tax reform, as well as further elaboration on why energy efficiency incentives are a vital component of any legislation aimed at reducing emissions and improving energy security.

Our member companies and NEMA’s staff of experienced engineers, spanning more than 50 industry sectors, stand ready to assist your Committee in the important task of achieving sensible tax reform that grows the economy and improves America’s competitiveness and security. If you have questions about our tax reform submission, please contact Chuck Konigsberg, Vice President, Strategy and Policy, 1300 North 17 thSt. STE 900, Arlington VA 22209, (703) 841-3200.    



Evan R. Gaddis            
President and CEO

Honorable Orrin Hatch, Ranking Member, Committee on Finance    
Honorable Ron Wyden, Chairman, Committee on Energy and Natural Resources
Honorable Lisa Murkowski, Ranking Member, Committee on Energy and Natural Resources
Members, Senate Committee on Finance
Members, Senate Committee on Energy and Natural Resources
Members, House Committee on Ways & Means
Members, House Committee on Energy & Commerce

NEMA Energy Tax Reform Comment Letter to Chairman Baucus_January 29 2014_FINAL.pdfNEMA Energy Tax Reform Comment Letter to Chairman Baucus


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