A new report issued by the American Council for an Energy-Efficient Economy (ACEEE) suggests that a tax reform could provide various opportunities to promote energy efficiency. In addition, the report proposes a number of crucial changes that should be made to the tax code, so that all barriers are removed by the Congress.
According to Steven Nadel, an executive director at ACEEE and a lead author of the report, exactly tax reform will be the dominating topic of discussion in Congress in the next few months. Considering that energy efficiency not only generates jobs, but also increases productivity and preserves the environment, it should definitely be included when the tax code is re-written.
The adjustments and changes that are listed in the report include promoting capital investments in manufacturing, encouraging advanced energy-saving technologies, as well as rationalizing depreciation schedules.
If these are implemented, the energy savings will increase profits and tax receipts. The authors estimated that encouraging advanced energy-saving technologies could increase employment by an average of 164,000jobs in the period between the 2014 and2030.
The report also discusses a possible reduction in subsidies for fossil fuels, and removing of disincentives to energy efficiency from the tax code.
Kate Farley, ACEEE researcher and co-author of the report, said that the report gives light to new perspectives which have not been taken into account before. The changes that are proposed will benefit the American society, as the manufacturing sector will be modernized with new advanced energy-saving technologies.
The report is based on previous publications by the ACEEE, which are combined with comments and reflections by various tax policy experts and stakeholders.