MILLER: NO TAX BREAKS FOR OIL COMPANIES IN SPILL DEAL
Oct 14, 2012 -
Washington, D.C. – Today, Congressman Jeff Miller (R-FL-01) criticized the Administration’s role in the potential settlement agreement between the Department of Justice and the parties responsible for the April 20, 2010 Deepwater Horizon Oil Spill.
Recent press reports indicate the Department of Justice is moving toward negotiating a global settlement agreement to include both Natural Resources Damage Assessment (NRDA) and Clean Water Act (CWA) penalties. The settlement agreement could disproportionately apply penalties to NRDA over the CWA, providing a tax advantage for responsible parties including BP.
“I find it repulsive that the President would attack Big Oil during the debate last night, all the while knowing that his Justice Department is negotiating a settlement with BP that could give the oil company hundreds of millions of dollars in tax credits,” Miller said. “The RESTORE Act was a carefully crafted and balanced approach. It would be irresponsible for the Administration to try to side step the RESTORE Act.”
NRDA fines have relatively strict guidelines requiring them to be spent on restoration of wildlife and habitats. They are considered compensatory and are typically tax deductible which could save the responsible parties millions. By contrast, Clean Water fines are punitive in nature and generally not deductible. With the passage of the RESTORE Act, 80% of the fine monies collected under the CWA would be directed to the five Gulf Coast states affected by the Deepwater Horizon Disaster.
President Obama said during the presidential debate last night “the oil industry essentially gets $4 billion a year in corporate welfare. Does anybody think when they go to fill up at the pump, that ExxonMobil needs that?”