Energy Efficiency Tax Incentives For Big Buildings Give ‘Bang for Buck,’ Says ACEEE
The Senate Finance Subcommittee on Energy, Natural Resources, and Infrastructure held a hearing yesterday to examine how incentives for energy efficiency can fit into tax reform.
Steve Nadel, executive director of the American Council for an Energy-Efficient Economy, who testified before the committee, encouraged well-targeted energy efficiency tax incentives.
ACEEE analysis found that a five-year federal tax credit for several high-efficiency products and services cost the government less than one-tenth the cost of the energy resources saved over a 15-year period. According to ACEEE, the options with the best payback are tax incentives for commercial buildings (both energy-efficient new construction and energy-saving retrofits), energy-efficient new homes, heating and cooling equipment, and appliances, and combined heat and power systems.
ACEEE’s analysis reviewed tax incentives passed by Congress in 1978 and 2005 and found that the 2005 tax incentives were more effective than the incentives of the 1980s, which were too small and promoted tried-and-true energy efficiency measures that many consumers and businesses were installing on their own. The 2005 tax incentives were more targeted, emphasizing advanced technologies and paying higher incentives.
In his testimony, Nadel suggested that Congress should continue to target advanced technologies and practices that currently have a low market share with federal support over a defined period of time – usually around five years – so that the technologies’ market share can grow and prosper on its own after the tax incentives end.
- What You Need to Know About Demand Charges
- Choosing the Right LED Product for Industrial Lighting Applications
- NAEM Trends Report: Planning for a Sustainable Future
- How to Automate the Collection & Delivery of Utility Billing Data
- Alarms Management: The Future is Now
- 24 Hour Fitness Trims Waste Costs Through an Effective Waste Recycling Program
- How "Fixed" is the Fixed Price Product?
- The Business Case for Corporate Sustainability Tools
- ARC Brief: Infrastructure: The Hidden Optimization Opportunity
- Cox Enterprises Cuts Energy Costs Up to 10-15% in Certain Markets
- BUYING STRATEGIES IN A VOLATILE MARKET: What Businesses Need to Know about Retail Electricity Procurement
- Smart Building Technology: The Key to Comprehensive Building Performance
- What Energy Managers Need to know about Procuring Natural Gas: Guidance for 2014 Natural Gas Contracts
- Energy Optimization from the Boiler Room to the Board Room
- Your Roadmap for Energy Management: First Stop – Myths & Realities of Energy Purchasing