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U.S. Department of Energy
Office of Scientific and Technical Information

Legal and Institutional Implications of Providing Financial Incentives to Encourage the Development of Solar Technologies

Technical Report ·
DOI:https://doi.org/10.2172/5914898· OSTI ID:5914898

The legal basis to provide financial incentives is found in the enumerated powers of the Constitution for the exercise of federal authority, the police and tax powers for the exercise of state authority, and state delegated powers for the exercise of local authority. These powers are limited by the federal and state constitutions, and the scope of delegated authority. The major types of financial incentives are tax incentives, including income tax deductions and credits, accelerated depreciation allowances, tax-exempt bonds, and reduction in property and sales taxes; loan incentives, including low interest loans, government guaranteed and insured loans, and elimination of statutory and secondary market constraints; and government transfer incentives, including grants in aid from all levels of government. Other incentives that will indirectly affect the financing and availability of solar energy technologies include eliminating or reducing financial incentives benefiting competitive energy sources, government action to insure the operation of solar energy equipment, government-sponsored education, research, and development programs, government demonstration and procurement programs, and placing priority on rapid passage of solar energy legislation dealing with financial incentives. In most cases, a financial incentives program constituting one or more of these incentives will probably not confront any major, unique, legal or institutional impediments. The minor impediments that do exist can usually be eliminated by preventive legislation.

Research Organization:
National Renewable Energy Laboratory (NREL), Golden, CO (United States)
Sponsoring Organization:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
DOE Contract Number:
AC36-08GO28308
OSTI ID:
5914898
Report Number(s):
SERI/TR-62-269
Country of Publication:
United States
Language:
English