IN WITNESS WHEREOF the undersigned, being duly authorized to that effect, have signed this Convention. DONE at New York this ninth day of May one thousand nine hundred and ninety-two. Australia ANNEX I Austria Belarus Belgium Bulgaria Canada Crotia Czech Republic Denmark European Economic Community Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Japan Latvia Liechtenstein Lithuania Luxembourg Monaco Netherlands New Zealand Norway Poland Portugal Romania Russian Federation Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine United Kingdom of Great Britain and Northern Ireland United States of America Countries that are undergoing the process of transition to a market economy. CRS Report for Congress Received through the CRS Web Global Climate Change: The Energy Tax Incentives In the President's FY1999 Budget Salvatore Lazzari 98-193 E March 4, 1998 Summary The President's FY1999 budget includes several energy tax incentives designed to help the United States reduce greenhouse gases that are linked to possible global warming. These incentives subsidize energy conservation, energy efficiency, and substitution toward alternative fuels such as solar power and electricity produced from biomass and wind. The conservation and efficiency tax incentives are in the form of nonrefundable tax credits for energy-saving capital goods, and they target each of the energy end-use sectors: transportation, industry, residential and commercial. In addition, some of the tax credits are intended to directly reduce the amount of harmful greenhouse gases that would otherwise be released into the atmosphere. Most of the incentives are new, some resembling versions of energy tax incentives that were enacted under President Carter's Energy Tax Act of 1978 (as amended), but have since expired. Two of the provisions constitute a liberalization of existing energy tax subsidies. Residential and Commercial Buildings Three tax credits are proposed in the FY1999 budget to reduce the use of conventional energy electricity from fossil fuels, natural gas, heating oil, etc. in residential and commercial buildings: (1) tax credits for equipment that uses solar energy; (2) a tax credit for the purchase of energy-efficient, new homes; and (3) a tax credit for purchases of energy efficiency equipment, and materials. Tax Credits for Solar Energy Equipment. The Administration proposes a tax credit for two types of solar energy using equipment: (1) a 15% tax credit for up to $13,334 in investments in rooftop solar equipment that uses photovoltaic cells to generate electricity, for a maximum tax credit of $2,000; and (2) a 15% tax credit for up to $6,667 in investments in solar water heating equipment (other than swimming pools), for a maximum tax credit of $1,000. Solar equipment installed in either a personal residence or a business would qualify for this tax credit, which would be "nonrefundable," i.e., limited by the amount of tax otherwise owed. |