Tax subsidies finance construction and hard energy path
US taxpayers pay at least $27 billion a year to cover tax benefits for energy development, most of which is non-renewable energy sources and poses environmental and safety hazards. Federal tax policy promotes conventional energy sources at the expense of more benign alternatives such as efficiency improvements. The Accelerated Cost Recovery System (ACRS) is the largest of the energy tax expenditures, saving utilities about $5 billion and oil firms between $6 and $10 billion in taxes a year. The investment tax credit (ITC) costs the Treasury at least $5 billion a year. Utilities also enjoy exclusive federal tax loopholes, including a dividend reinvestment scheme and the two-county rule. Federal tax expenditures for oil and gas development are even larger, with coal development qualifying for most of the benefits on a smaller scale. Only about $1 billion remains for renewable resources and conservation.
- OSTI ID:
- 5579462
- Journal Information:
- Power Line; (United States), Vol. 10:5
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
ELECTRIC UTILITIES
ENERGY POLICY
SUBSIDIES
TAX CREDITS
ENERGY CONSERVATION
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY
RENEWABLE ENERGY SOURCES
FINANCIAL INCENTIVES
INVESTMENT
ENERGY SOURCES
GOVERNMENT POLICIES
INDUSTRY
PUBLIC UTILITIES
290200* - Energy Planning & Policy- Economics & Sociology
293000 - Energy Planning & Policy- Policy
Legislation
& Regulation