Trump administration officials will offer tax breaks worth up to $1 billion to energy companies and oil and gas producers to help fund the nation’s costly oil and natural gas infrastructure projects, a senior administration official said Friday.
The official, who spoke on condition of anonymity to discuss the discussions, said the grants will go to energy-intensive projects, such as liquefied natural gas and coal infrastructure, that are critical to the United States economy.
The administration also intends to issue a grant to help oil-and-gas companies develop projects in Texas, California and elsewhere to improve oil and coal operations, the official said.
The president has proposed to spend $5.6 trillion over the next decade on energy projects.
Energy-intensive oil &gas projects were among the top five priorities for the Trump administration in the final year of its term, according to a White House budget document.
The plan would require more than $5 billion in federal funds for oil and other energy projects in 2017.
It is unclear how much Trump will offer incentives for energy companies, including the oil & gas industry.
The proposal to support energy infrastructure projects comes after Trump took office in January.
Trump has made his energy and climate policies a centerpiece of his presidency, with the president announcing a major oil-export terminal in the Gulf of Mexico in 2019.
The proposed tax breaks are part of a broader push by the administration to spur economic growth and create jobs by supporting infrastructure projects.
The tax credits would also cover a portion of the cost of building the proposed Keystone XL pipeline, which would carry tar sands oil from Canada to refineries in the U.S. and the Gulf Coast.