{ "id": "R41953", "type": "CRS Report", "typeId": "REPORTS", "number": "R41953", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 447616, "date": "2015-03-19", "retrieved": "2016-04-06T19:20:10.869864", "title": "Energy Tax Incentives: Measuring Value Across Different Types of Energy Resources", "summary": "The U.S. tax code supports the energy sector by providing a number of targeted tax incentives, or tax incentives only available for the energy industry. As Congress evaluates the tax code and contemplates tax reform, there has been interest in understanding how energy tax benefits are distributed across different domestic energy resources. For example, what percentage of energy-related tax benefits support fossil fuels (or support renewables)? How much domestic energy is produced using fossil fuels (or produced using renewables)? And how do these figures compare?\nIn 2013, the value of federal tax-related support for the energy sector was estimated to be $23.3 billion. Of this, $4.8 billion (20.4%) can be attributed to tax incentives supporting fossil fuels. Tax-related support for renewables was an estimated $13.4 billion in 2013 (or 57.4% of total tax-related support for energy). \nWhile the cost of tax incentives for renewables has exceeded the cost of incentives for fossil fuels in recent years, the majority of energy produced in the United States continues to be derived from fossil fuels. In 2013, fossil fuels accounted for 78.5% of U.S. primary energy production. The remaining primary energy production is attributable to nuclear electric and renewable energy resources, with shares of 10.1% and 11.4%, respectively. \nThe balance of energy-related tax incentives has changed over time, and it is projected to continue to change, under current law, in coming years. Factors that have contributed to recent changes in the balance of energy-related tax incentives include\nThe expiration of tax-related support for renewables fuels. Tax-related support for renewable fuels declined substantially after the tax credits for alcohol fuels was allowed to expire at the end of 2011. Other fuels-related incentives also expired at the end of 2014 (although these may be extended as part of the \u201ctax extenders\u201d). \nThe Section 1603 grants in lieu of tax credits program. A major source of tax-related support for renewables in recent years has been the Section 1603 grant program. This program is not available for projects beginning construction after the end of 2011. While outlays for this program increased through 2013, as qualified property was placed in service, outlays for Section 1603 grants have begun to decline. \nExpired tax incentives for renewables and energy efficiency. Several other incentives for renewables and energy efficiency have expired (again, these may be extended as part of the tax extenders). Since tax-related support for fossil fuels is expected to remain roughly constant under current law, the expiration of renewables- and efficiency-related incentives means the share of tax incentives for these sectors is expected to decline in future years, under current law. \nWhile subsidy per unit of production or subsidy relative to production level calculations may be one starting point for evaluating energy tax policy, a complete policy analysis might consider why the level of federal financial support differs across various energy technologies. Tax incentives for energy may support various environmental or economic objectives. For example, tax incentives designed to reduce reliance on imported petroleum may be consistent with energy security goals. Tax incentives that promote renewable energy resources may be consistent with certain environmental objectives.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41953", "sha1": "d5ffdbf41d98659410dcc0a4a139d37a0d81a72a", "filename": "files/20150319_R41953_d5ffdbf41d98659410dcc0a4a139d37a0d81a72a.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41953", "sha1": "5713ca6d71ddfa019735c03c3c4867a7f83372c2", "filename": "files/20150319_R41953_5713ca6d71ddfa019735c03c3c4867a7f83372c2.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 3382, "name": "Agriculture-Based Biofuels" }, { "source": "IBCList", "id": 3905, "name": "Energy Tax Policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc812358/", "id": "R41953_2012Sep18", "date": "2012-09-18", "retrieved": "2016-03-19T13:57:26", "title": "Energy Tax Incentives: Measuring Value Across Different Types of Energy Resources", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120918_R41953_6770fc55ba63e4b37a3edd5c9852bf4dc1509688.pdf" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc818220/", "id": "R41953_2011Aug10", "date": "2011-08-10", "retrieved": "2016-03-19T13:57:26", "title": "Energy Tax Incentives: Measuring Value Across Different Types of Energy Resources", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20110810_R41953_d5b12a06a0afb515d22a2bc02aa770d723dede1d.pdf" }, { "format": "HTML", "filename": "files/20110810_R41953_d5b12a06a0afb515d22a2bc02aa770d723dede1d.html" } ], "topics": [] } ], "topics": [ "Energy Policy" ] }