A deal being negotiated in Congress to end the U.S. ban on oil exports could include a $3-per-barrel tax break for independent refiners. Via Bloomberg, the deal could also result in a higher manufacturing tax credit.
Some Democratic lawmakers are amenable to ending the ban in return for major concessions from their Republican counterparts. Sen. Edward Markey (D-Mass.), for instance, has called for a 10-year extension of wind and solar energy tax credits that are tied to any benefit the oil industry receives from lifting the ban.
Bloomberg notes that the American Fuel and Petrochemical Manufacturers (AFPM) oppose the refiner tax break proposal, saying it wouldn’t help 35% of U.S. refiners. AFPM does not oppose lifting the ban on oil exports.
Republican lawmakers have made removing the ban a higher priority in the past year, despite previous fears it would result in higher gasoline prices. Many independent refiners oppose the ban, given the likelihood it would shrink their profit margins by narrowing the price spread between domestic and foreign oil.
The oil export ban deal would be part of an omnibus federal spending bill needed to continue funding the federal government.
