Bill Cutting Tax Benefits For Big Oil Companies Fails To Advance In Senate; Backers Will Look For Another Venue

On May 17, Senate Democrats failed to gain the 60 votes necessary to move to consideration of S. 490, the “Close Big Oil Tax Loopholes Act.” The motion to proceed to the bill failed by a vote of 52 to 48. The bill would have cut targeted tax breaks for major integrated oil companies (as defined in section Code Sec. 167(h)(5)(B)) and used the savings to reduce the deficit. The bill's backers were undeterred by the defeat and said they'll look for another venue to advance the bill. Before the vote on the motion to proceed to the bill, Senate Majority Leader Harry Reid (D-NV) said, “I am confident that before we finish our budget negotiations here, in anticipation of raising the debt ceiling, that [the Close Big Oil Tax Loopholes Act] would be part of it.”