Obama takes aim at billions in oil, gas, coal tax breaks

President Obama is taking aim at roughly $50 billion in tax breaks for the oil, natural gas and coal industries.  

In his 2016 budget proposal, Obama called for a repeal of the industry tax breaks over a decade, a move the president has long-supported despite continued opposition. 

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Obama targets a deduction afforded companies for domestic manufacturing, expensed intangible drilling costs, and breaks for coal exploration and development costs, among other tax breaks in the budget.  

The American Petroleum Institute railed against the proposal, claiming it would effectively implement a $95 billion energy tax hike on the oil and gas industry. 

"The United States is now the number one producer of oil and natural gas in the world. Tax increases would jeopardize America’s competitiveness as it would discourage future investment," said API CEO Jack Gerard. "We need policies that will encourage investment, and higher taxes are not the answer.”

Obama's proposal would also spur growth in renewable energy sector, proposing a permanent extension of investments in solar-energy programs and permanently renew the wind energy production tax credit. Both could cost roughly $31.5 billion over the coming decade.