Studies on Effectiveness of Energy Tax Incentives Are Inconclusive

EMD-82-20: Published: Mar 11, 1982. Publicly Released: Mar 11, 1982.

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GAO was requested to examine: (1) the ability of U.S. electric utilities to undertake future energy research and development activity in light of current Federal budget constraints; and (2) the effectiveness of existing Federal tax incentives for energy production and conservation.

The review showed that existing analyses are limited and provide no definite answers. However, some studies have reached tentative conclusions, and ongoing Department of Energy (DOE) efforts should supply valuable new information on the conservation and renewable tax credits. In the opinion of GAO, the work in progress may provide a better base for judging the performance of these tax incentives. According to DOE, most of the ongoing studies are expected to be completed by mid-1982.

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