{ "id": "R43206", "type": "CRS Report", "typeId": "REPORTS", "number": "R43206", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 453496, "date": "2016-06-15", "retrieved": "2016-11-28T22:04:34.472305", "title": "Energy Tax Policy: Issues in the 114th Congress", "summary": "Current U.S. energy tax policy is a combination of long-standing provisions and relatively new incentives. Provisions supporting the oil and gas sector reflect desires for domestic energy production and energy security, long-standing cornerstones of U.S. energy policy. Incentives for renewable energy reflect the desire to have a diverse energy supply, also consistent with a desire for domestic energy security. Incentives for energy efficiency are designed to reduce use of energy from all energy sources. Incentives for renewable energy, energy efficiency, and alternative technology vehicles reflect environmental concerns related to the production and consumption of energy using fossil-based resources.\nMany energy-related tax provisions are temporary, with a number scheduled to expire at the end of 2016. Most recently, expired energy tax incentives were extended as part of the Consolidated Appropriations Act, 2016 (P.L. 114-113). Most energy-related provisions were extended for two years, through the end of 2016. Incentives for wind and solar were given longer-term extensions, with credits scheduled to phase out over a multi-year period in the future. One issue is whether energy-related tax incentives currently scheduled to expire at the end of 2016 will be further extended.\nEnergy-related tax incentives reduce the amount of federal tax revenue collected. Between 2015 and 2019, it is estimated that incentives for fossil fuels will reduce revenues by $21.5 billion. For renewables, the cost of energy-related tax incentives is an estimated $46.5 billion over the same time period. The cost of tax incentives for energy efficiency is estimated to be $3.1 billion in federal revenue loss between 2015 and 2019. These estimates reflect the recent extensions enacted in P.L. 114-113. However, further extensions of energy-related tax provisions currently scheduled to expire would increase the cost of these incentives. \nThe Obama Administration has also proposed a number of changes to energy tax policy as part of its annual budget proposal. Similar to past budgets, the FY2017 proposal suggests repealing a number of existing tax incentives for fossil fuels, while providing new or expanded incentives for carbon sequestration, alternative and advanced technology vehicles, renewable electricity, energy efficiency, and advanced energy manufacturing. The FY2017 budget also proposes a per-barrel fee on oil.\nEnergy tax policy involves the use of one of the government\u2019s main fiscal instruments, taxes (both as an incentive and as a disincentive) to alter the allocation or configuration of energy resources and their use. In theory, energy taxes and subsidies, like tax policy instruments in general, are intended either to correct a problem or distortion in the energy markets or to achieve some economic (efficiency, equity, or even macroeconomic) objective. The economic rationale for government intervention in energy markets is commonly based on the government\u2019s perceived ability to correct for market failures. To correct for these market failures governments can utilize several policy options, including taxes, subsidies, and regulation, in an effort to achieve policy goals. In practice, energy tax policy in the United States is made in a political setting, determined by fiscal dictates and the views and interests of the key players in this setting, including policymakers, special interest groups, and academic scholars. As a result, enacted tax policy embodies compromises between economic and political goals, which could either mitigate or compound existing distortions.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43206", "sha1": "1c4ea5f11046694b1e906a76e1762d37fc07dba8", "filename": "files/20160615_R43206_1c4ea5f11046694b1e906a76e1762d37fc07dba8.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43206", "sha1": "1784b2fdfb03d00e7705471341868b4e14bbe03f", "filename": "files/20160615_R43206_1784b2fdfb03d00e7705471341868b4e14bbe03f.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4780, "name": "Energy & Natural Resources Trade & Economics" }, { "source": "IBCList", "id": 4907, "name": "Energy Policy" }, { "source": "IBCList", "id": 4935, "name": "Energy Tax" } ] }, { "source": "EveryCRSReport.com", "id": 445135, "date": "2015-09-04", "retrieved": "2016-04-06T18:26:23.832192", "title": "Energy Tax Policy: Issues in the 114th Congress", "summary": "A number of energy tax provisions expired at the end of 2014. Expired provisions include those that support renewable electricity (the production tax credit (PTC)), provisions that support energy efficiency in both residential and commercial buildings, and tax credits for certain biofuels and other alternative fuels. Like the 113th Congress, the 114th Congress may choose to address expired energy tax provisions. The Tax Increase Prevention Act (P.L. 113-295), enacted late in the 113th Congress, temporarily extended, through 2014, most expired energy tax provisions. The Tax Relief Extension Act of 2015 (S. 1946) proposes extending expired energy tax provisions for two years, through 2016.\nEnergy tax policy may also be considered as part of comprehensive tax reform legislation. A base-broadening approach to tax reform might consider the elimination of various energy tax expenditures in conjunction with a reduction in overall tax rates. This was the approach taken in the Tax Reform Act of 2014 (H.R. 1), introduced late in the 113th Congress by then-Chairman of the House Ways and Means Committee Dave Camp. Alternative revenue sources, such as a carbon tax, may also be evaluated as part of the tax reform process.\nThe Obama Administration has also proposed a number of changes to energy tax policy as part of its annual budget proposal. In the past, the Administration has proposed repealing a number of existing tax incentives for fossil fuels, while providing new or expanded incentives for carbon sequestration, alternative and advanced technology vehicles, renewable electricity, energy efficiency, and advanced energy manufacturing.\nEnergy tax policy involves the use of one of the government\u2019s main fiscal instruments, taxes (both as an incentive and as a disincentive) to alter the allocation or configuration of energy resources and their use. In theory, energy taxes and subsidies, like tax policy instruments in general, are intended either to correct a problem or distortion in the energy markets or to achieve some economic (efficiency, equity, or even macroeconomic) objective. The economic rationale for government intervention in energy markets is commonly based on the government\u2019s perceived ability to correct for market failures. Market failures, such as externalities, principal-agent problems, and informational asymmetries, result in an economically inefficient allocation of resources\u2014in which society does not maximize well-being. To correct for these market failures governments can utilize several policy options, including taxes, subsidies, and regulation, in an effort to achieve policy goals. In practice, energy tax policy in the United States is made in a political setting, determined by fiscal dictates and the views and interests of the key players in this setting, including policymakers, special interest groups, and academic scholars. As a result, enacted tax policy embodies compromises between economic and political goals, which could either mitigate or compound existing distortions.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43206", "sha1": "4d6a2b4eb8f48a83387433998fe9a1545a16344a", "filename": "files/20150904_R43206_4d6a2b4eb8f48a83387433998fe9a1545a16344a.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43206", "sha1": "b736eee97e118636480422df97cb48d789fcd361", "filename": "files/20150904_R43206_b736eee97e118636480422df97cb48d789fcd361.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 3905, "name": "Energy Tax Policy" }, { "source": "IBCList", "id": 4402, "name": "Energy Law and Policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc795491/", "id": "R43206_2015Jan22", "date": "2015-01-22", "retrieved": "2016-01-13T14:26:20", "title": "Energy Tax Policy: Issues in the 114th Congress", "summary": "This report begins by providing background on the economic rationale for energy market interventions, highlighting various market failures. After identifying possible market failures in the production and consumption of energy, possible interventions are discussed. The report concludes with an analysis of the current status of energy tax policy.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20150122_R43206_63b13616cc26a414fbdb11261576d3fb4e4421b1.pdf" }, { "format": "HTML", "filename": "files/20150122_R43206_63b13616cc26a414fbdb11261576d3fb4e4421b1.html", "source": "pymupdf" } ], "topics": [ { "source": "LIV", "id": "Energy policy", "name": "Energy policy" }, { "source": "LIV", "id": "Energy law and legislation", "name": "Energy law and legislation" }, { "source": "LIV", "id": "Energy tax credits", "name": "Energy tax credits" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc272053/", "id": "R43206_2013Dec19", "date": "2013-12-19", "retrieved": "2014-02-03T19:46:03", "title": "Energy Tax Policy: Issues in the 113th Congress", "summary": "This report discusses the energy tax policy that may also be considered as part of comprehensive tax reform legislation in the 113th Congress. Also the report discusses a number of other energy tax incentives scheduled to expire at the end of 2013, including provisions to support building energy efficiency and renewable fuels.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20131219_R43206_6050a647235e5d71fcc337564aa294223776dc69.pdf" }, { "format": "HTML", "filename": "files/20131219_R43206_6050a647235e5d71fcc337564aa294223776dc69.html", "source": "pymupdf" } ], "topics": [ { "source": "LIV", "id": "Energy policy", "name": "Energy policy" }, { "source": "LIV", "id": "Energy law and legislation", "name": "Energy law and legislation" }, { "source": "LIV", "id": "Energy tax credits", "name": "Energy tax credits" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc227921/", "id": "R43206_2013Sep04", "date": "2013-09-04", "retrieved": "2013-11-05T18:07:05", "title": "Energy Tax Policy: Issues in the 113th Congress", "summary": "This report discusses the energy tax policy that may also be considered as part of comprehensive tax reform legislation in the 113th Congress. Also the report discusses a number of other energy tax incentives, including provisions to support building energy efficiency and renewable fuels, that are also scheduled to expire at the end of 2013.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130904_R43206_9385c901fd08d14f9bb2dcfd5b3faf90cf0c92b7.pdf" }, { "format": "HTML", "filename": "files/20130904_R43206_9385c901fd08d14f9bb2dcfd5b3faf90cf0c92b7.html", "source": "pymupdf" } ], "topics": [ { "source": "LIV", "id": "Energy policy", "name": "Energy policy" }, { "source": "LIV", "id": "Energy law and legislation", "name": "Energy law and legislation" }, { "source": "LIV", "id": "Energy tax credits", "name": "Energy tax credits" } ] } ], "topics": [ "Appropriations", "Economic Policy", "Energy Policy" ] }