The Value of Energy Tax Incentives for Different Types of Energy Resources: In Brief

The Value of Energy Tax Incentives for Different Types of Energy Resources: In Brief. Congressional Research Service, Library of Congress. Molly F. Sherlock. May 18, 2017

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 energyrelated 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?

In 2016, the value of federal tax-related support for the energy sector was estimated to be $18.2 billion. Of this, $5.2 billion (28.6%) can be attributed to tax incentives supporting fossil fuels. Tax-related support for renewables was an estimated $11.4 billion in 2016 (or 62.6% of total tax-related support for energy). The remaining tax-related support went toward nuclear energy, efficiency measures, and alternative technology vehicles.

[PDF format, 15 pages, 811.42 KB].

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