Thermal efficiency and taxes: the residential energy conservation tax credit

Journal Article · Sat Jan 01 04:00:00 EST 1977 · Harvard Journal on Legislation; (United States)

OSTI ID:7045514

Hyatt, S V

National concern over the growing American dependence on foreign oil has sparked interest in efforts to increase residential energy conservation through government incentives. Many officials, including, most recently, President Carter in his energy address, have considered utilizing tax credits because they are viewed as a popular and effective means of stimulating private conservation decisions. It is argued that a residential energy conservation tax credit, as a budgetary item, would adversely affect the equity and administration of the tax system and would offer no assurance of significant energy savings in relation to the amount of lost tax revenues. Moreover, uncertainties about the effectiveness of any conservation incentive scheme make an immediate large-scale subsidy program for energy conservation investments in existing homes unwise. A gradual expansion of pilot programs that incorporate accumulated experience into policy decisions would reduce waste and increase long-term energy savings. Although it is recognized that direct assistance would share some of the problems of tax credits, a greater potential in the direct grant for influencing consumers' decisions to conserve is seen. Direct assistance could be both more efficient and easier to administer than tax credits for residential energy conservation.

• OSTI ID: 7045514
• Journal Information: Harvard Journal on Legislation; (United States), Journal Name: Harvard Journal on Legislation; (United States) Vol. 14
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
140400* -- Solar Energy-- Environmental Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
291000 -- Energy Planning & Policy-- Conservation
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101 -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
BUILDINGS
ECONOMICS
ENERGY
ENERGY CONSERVATION
ENERGY POLICY
ENERGY SOURCES
FINANCIAL INCENTIVES
FINANCING
GOVERNMENT POLICIES
GRANTS
INVESTMENT
LAWS
LEGISLATION
RENEWABLE ENERGY SOURCES
RESEARCH PROGRAMS
RESIDENTIAL BUILDINGS
RESIDENTIAL SECTOR
RETROFITTING
SOLAR ENERGY
TAX LAWS
TAXES