The provisions are likely to be a part of legislation to extend or renew a number of different tax credits, including those for renewable energy projects. The Exxon provision is in the main version of the bill that's being worked on now, said Sen. Lisa Murkowski, R-Alaska.
If it passes, it would allow plaintiffs to average out their awards over three years, rather than paying taxes on it in just one year. It also would allow them to put the money away for retirement without facing some of the annual limits.
"It helps to offset the taxes, and just kind of softens the hit," Murkowski said. "These people have been waiting for their payoff from Exxon for 17, 18 years now, and it's always seemed more than just a little bit unfair that you get the check from Exxon and then you literally have to turn it over to Uncle Sam."
The bill will be controversial, because there are concerns that if tax credits are added, budget writers will need to find a way to offset the loss of tax revenue so they don't add to the deficit.
But Murkowski said that the legislation has a good chance because many members of Congress are eager to pass legislation before they adjourn at the end of next week. Passing the renewable energy tax credits is a concrete accomplishment they can point to, Murkowski said.
"We've been talking a lot about what we're going to do about energy and we haven't been able to advance much. This is stuff we can point to and say, 'you know what, we are doing something about the energy debate here.' "
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