Energy Tax Act of 1978

Journal Article · Mon Oct 01 00:00:00 EDT 1979 · Nat. Resour. J.; (United States)

OSTI ID:5625890

McDonald, S L

The Energy Tax Act of 1978 amends the Internal Revenue Code of 1954 in several ways to provide tax incentives for actions that would conserve energy or substitute alternative sources of energy for oil and gas. The Act provides residential energy credit, a gas guzzler tax, subsidies for gasohol, reduced excise taxes on buses, and incentives for vanpooling. It also provides for changes in the investment tax credit to promote conservation, the introduction of percentage depletion, and the accounting as expenses the intangibles connected with producing geothermal energy. The main thrust of the Act's provisions are indicated and an economic analysis made which indicates that some allocative inefficiency will result. A condition of tax neutrality and free oil and gas prices would, ideally, provide the necessary incentives. There may be some extenuating circumstances relating to competitive imperfections that justify some temporary special tax treatment of renewable energy sources.

• Research Organization: Univ. of Texas, Austin
• OSTI ID: 5625890
• Journal Information: Nat. Resour. J.; (United States), Vol. 19:4
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
ENERGY CONSERVATION
FINANCIAL INCENTIVES
NATIONAL ENERGY ACT
TAXES
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMIC POLICY
SUBSIDIES
SYNTHETIC FUELS
ECONOMICS
FUELS
GOVERNMENT POLICIES
LAWS
293000* - Energy Planning & Policy- Policy
Legislation
& Regulation
290200 - Energy Planning & Policy- Economics & Sociology
291000 - Energy Planning & Policy- Conservation