Congress has opp to shape energy efficiency with tax reform
With tax reform, Congress will have many opportunities to both promote energy efficiency and remove barriers to its implementation, according to a new report by the American Council for an Energy-Efficient Economy (ACEEE).
"Tax reform will be a major topic of discussion in Congress in upcoming months, and energy efficiency should be part of the conversation," said Steven Nadel, ACEEE's executive director and the report's lead author. "Since energy efficiency leads to job growth, increased productivity, and a cleaner environment, it's only common sense that Congress should consider these changes as they rewrite the tax code."
The report suggests that tax reforms should take place in several areas, including promoting capital investment in manufacturing, encouraging advanced energy-saving technologies, and rationalizing depreciation schedules. Changes in these three areas would pay for themselves as the increased energy savings increase profits and tax receipts, according to the research. Further, the provisions to encourage advanced energy-saving technologies would increase employment by an average of 164,000 jobs over from 2014 to 2030.
"By using the tax code to remove barriers to energy efficiency, Congress can help modernize the manufacturing sector, promote new, advanced energy-saving technologies, and help us all keep more money in our pocketbooks," contends Kate Farley, ACEEE researcher and co-author of the report.
- see the report
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