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The Family and Business Tax Cut Certainty Act of 2012, which passed through the Senate Finance Committee in August, was copied and pasted into the fiscal cliff legislation, yielding a victory for biotech companies, wind-turbine-makers, biodiesel producers, film studios — and their lobbyists. So, if you’re wondering how algae subsidies became part of a must-pass package to avert the dreaded fiscal cliff, credit the Biotechnology Industry Organization’s lobbying last summer.

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Some tax lobbyists mostly ignored the August bill “because they thought it would be just a political document,” one K Streeter told me. “They were the ones that got bit in the butt.”

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Here’s what happened: In late July, Finance Chairman Max Baucus announced the committee would soon convene to craft a bill extending many expiring tax credits. This attracted lobbyists like a raw steak attracts wolves.

Senator Max Baucus, Democrat from Montana Drunk on the US Senate Floor debating National health Care

Former Sens. John Breaux, D-La., and Trent Lott, R-Miss., a pair of rainmaker lobbyists, pleaded for extensions on behalf of a powerful lineup of clients.

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General Electric and Citigroup, for instance, hired Breaux and Lott to extend a tax provision that allows multinational corporations to defer U.S. taxes by moving profits into offshore financial subsidiaries. This provision — known as the “active financing exception” — is the main tool GE uses to avoid nearly all U.S. corporate income tax.

NOTE:

Since the 1980s Greenspan, Summers, Rubin, Reed, & Weill were doing everything they could to remove the regulations between commercial and investment banks (insurance companies) that the Glass-Steagall Act of 1933 had made law to prevent. In fact, In 1998, Citigroup bank (a commercial bank) purchased Travelers Group (High Risk Insurance Company) and they broke the law in violation of the Glass-Steagall Act.

Citigroup received from tax payers a bailout for $306 Billion {of course in newly printed money} that we must work off in one form or another!!! Lets not forget Citigroup had previously received from us taxpayers $25 billion in exchange for preferred shares on which they were supposed to pay 5% interest for five years and then 9%. But people were running out of jobs and couldn’t pay so Citigroup recently laid off about 50,000 of its employees, or 20% of its global workforce. Not a bad scheme for indebting the United States eh?

Liquor giant Diageo also retained Breaux and Lott to win extensions on two provisions benefitting rum-making in Puerto Rico.

The K Street firm Capitol Tax Partners, led by Treasury Department alumni from the Clinton administration, represented an even more impressive list of tax clients, who paid CTP more than $1.68 million in the third quarter.

Besides financial clients like Citi, Goldman Sachs and Morgan Stanley, CTP represented green energy companies like GE and the American Wind Energy Association. These companies won extension and expansion of the production tax credit for wind energy.

NOTE:

Spain’s Dr. Gabriel Calzada — the author of a damning study concluding that Spain’s “green jobs” energy program has been a catastrophic economic failure — was mailed a dismantled bomb on Tuesday by solar energy company Thermotechnic.

Says Calzada:

Before opening it, I called [Thermotechnic] to know what was inside … they answered, it was their answer to my energy pieces.

Dr. Calzada contacted a terrorism expert to handle the package. The expert first performed a scan of the package, then opened it in front of a journalist, Dr. Calzada, and a private security expert.

The terrorism consultant said he had seen this before:

This time you receive unconnected pieces. Next time it can explode in your hands.

Dr. Calzada added:

[The terrorism expert] told me that this was a warning.

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Hollywood hired CTP, too: The Motion Picture Association of America won an extension on tax credits for film production.

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After packing 50 tax credit extensions into the bill, the committee voted 19 to 5 to pass it. But then it stalled. The Senate left for the conventions and the fall campaign. Meanwhile, House Republicans signaled resistance to some of the extensions — especially for green energy.

One lobbyist said he didn’t worry too much about the Baucus bill because “we knew the House wasn’t going to pass it.” But another lobbyist, who had worked on the Puerto Rico issues, said he saw Baucus’ bill as an important starting point that “set the parameters” of a future fight with House Republicans.

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But there never was a fight. Baucus’ bill sat ignored until last week, when the White House sat down with Senate Republicans to craft a deal averting the fiscal cliff.

A Republican Senate aide familiar with the cliff negotiations tells me the White House wanted permanent extensions of a whole slew of corporate tax credits. When Senate Republicans said no, “the White House insisted that the exact language” of the Baucus bill be included in the fiscal cliff deal. “They were absolutely insistent,” another aide tells me. (The White House did not return requests for comment.)

Sure enough, Title II of the fiscal cliff legislation is nearly a word-for-word replication of the Family and Business Tax Cut Certainty Act of 2012.

So, this wasn’t a case of lobbyists sneaking provisions into a huge package at the last minute. That probably wouldn’t have been possible, many lobbyists told me Wednesday, because the workload in the past two weeks was too large and the political stakes were too high.

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One lobbyist who worked on the bill over the summer said he would never ask a member ” ‘Hey, can you do this for a client,’ when their political lives are on the line.”

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“The legislators and the staff go underground when things get so intense,” another Hill staffer-turned-lobbyist told me. “Nobody has time for a meeting. Nobody wants to talk about what’s going on. … The key is to plant the seed months in advance.”

GE, Goldman Sachs, Diageo — they planted their seeds over the summer. They’ll enjoy the fruit in the new year.

Timothy P. Carney, The Examiner’s senior political columnist, can be contacted at tcarney@washingtonexaminer.com. His column appears Monday and Thursday, and his stories and blog posts appear on washingtonexaminer.com.