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Tax incentives in the US to promote clean and renewable energy production versus traditional fossil fuels

12 Mar 2012
The biggest hot topic for discussion in the US for energy tax issues is related to the potential unwinding of tax incentives currently provided to the fossil fuel extraction and processing industry.

Today, large fossil fuel companies enjoy substantial deductions related to depletion deductions on proven reserve, intangible drilling cost deductions, geological and geophysical deductions and other benefits. These deductions are the target of Congress in developing a broader base for US taxation and in promoting a cleaner form of energy for the US consumer.  As the US attempts to reduce reliance on fossil fuels and instead shift their energy policy to a more domestic natural gas and renewable base, tax incentives formerly benefitting the fossil fuel industry will vanish and more incentives related to the renewable space will appear.

Taxand's Take

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