Federal Support for Developing, Producing, and Using Fuels and Energy Technologies (2016)
Dinan, Terry; and U.S. Congressional Budget Office
Dinan, Terry; and U.S. Congressional Budget Office
| Table 1. Energy-Related Tax Preferences, 2016 | |||
| Type of Fuel or Technology Supported | Tax Preference | Estimated Total Cost (Billions of Dollars) |
Expiration Date |
| Tax Preferences Affecting Income Taxes | |||
| Renewable Energy | Credits for the production of electricity from renewable resources | 3.4 | Various |
| Credits for investments in solar and geothermal equipment, fuel cells, and microturbines | 2.6 | Various | |
| Credit for investment in advanced energy property, including property used in producing energy from wind, the sun, or geothermal sources | 0.3 | Fixed $2.3 billion in credit; available until used | |
| Five-year depreciation for certain renewable energy equipment | 0.3 | None | |
| Total | 6.6 | ||
| Fossil Fuels | Expensing of exploration and development costs for oil and natural gas | 1.8 | None |
| Option to expense depletion costs on the basis of gross income rather than actual costs | 0.9 | None | |
| Exceptions for publicly traded partnerships with qualifying income derived from certain energy-related activities | 0.9 | None | |
| Amortization of costs of air pollution control facilities | 0.5 | None | |
| Credit for investment in clean coal facilities | 0.2 | Fixed dollar amount of credit; available until used | |
| 15-year depreciation for natural gas distribution lines | 0.2 | 12/31/2010 | |
| Amortization of geological and geophysical expenditures associated with oil and gas exploration | 0.1 | None | |
| Total | 4.6 | ||
| Energy Efficiency | Residential efficiency property credit | 1.1 | 12/31/2021 |
| Credit for energy-efficiency improvements to existing homes | 0.5 | 12/31/2016 | |
| Credit for new energy-efficient homes | 0.4 | 12/31/2016 | |
| Credit for plug-in electric vehicles | 0.3 | Expires for each manufacturer when the number of vehicles it sells reaches the limit set by the federal government | |
| Deduction for energy-efficient commercial buildings | 0.2 | 12/31/2016 | |
| 10-year depreciation for smart meters or other devices for monitoring and managing energy use | 0.1 | None | |
| Electricity 15-year depreciation of certain property related to electricity transmission | 0.1 | None | |
| Total | 2.6 | ||
| Nuclear Energy | Special tax rate for reserve funds for nuclear decommissioning | 0.2 | None |
| Tax Preferences Affecting Energy-Related Excise Taxes | |||
| Renewable Energy | Biodiesel and renewable diesel credits | 3.6 | 12/31/2016 |
| Tax incentives for alternative fuels | 0.6 | 12/31/2016 | |
| Grants in Lieu of Tax Credits Affecting Energy-Related Excise Taxes | |||
| Renewable Energy | Section 1603 grants | 0.1 | 12/31/2011 |
| All Energy-Related Tax Preferences | |||
| Total | 18.4 | n.a. | |
[1]
—Terry Dinan, Senior Adviser Microeconomic Studies Division, Congressional Budget Office
Before the Subcommittee on Energy Committee on Energy and Commerce, U.S. House of Representatives, March 29, 2017
Download original document: “Federal Support for Developing, Producing, and Using Fuels and Energy Technologies [2]”
URL to article: https://www.wind-watch.org/documents/federal-support-for-developing-producing-and-using-fuels-and-energy-technologies-2016/
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[1] Image: https://docs.wind-watch.org/Federal-Support-Fig1.png
[2] Federal Support for Developing, Producing, and Using Fuels and Energy Technologies: https://docs.wind-watch.org/Federal-Support-Fuels-Energy.pdf