Bill Overview
Title: To amend the Internal Revenue Code of 1986 to repeal the production tax credit and the investment tax credit.
Description: This bill repeals the tax credit for the production of electricity from renewable resources and the energy tax credit.
Sponsors: Rep. Perry, Scott [R-PA-10]
Target Audience
Population: People reliant on energy production and services worldwide
Estimated Size: 330000000
- The global energy sector employs millions of people, including those involved in renewable energy production.
- The renewable energy sector has seen significant growth, especially in solar and wind energy, which employ large numbers of people worldwide.
- Removing tax credits may disincentivize investment in renewable energy, potentially affecting the global transition to sustainable energy and impacting everyone relying on energy services.
- Investment and production tax credits in the US have been pivotal in supporting the growth of the renewable energy industry.
- The product and source of energy affect every household and business globally, given that energy is a fundamental service.
Reasoning
- The renewable energy sector employs a significant portion of the workforce, especially in rural and economically disadvantaged areas where new job creation is crucial.
- Considering the wide-reaching implications of energy prices on both households and businesses, the removal of tax credits is likely to have a broad impact on the economy.
- A diverse set of individuals was selected for interviews to include various demographics such as urban and rural residents, different age groups, and those with differing levels of dependency on the renewable energy sector.
- Some individuals selected may not have a direct involvement in the renewable energy sector but may experience indirect consequences such as changes in utility costs or environmental impacts.
- Given that the policy involves financial changes with negative budget implications, understanding how those financial shifts translate into visible changes in wellbeing over time is crucial.
Simulated Interviews
Solar Panel Technician (San Francisco, CA)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I'm worried about job security and future projects if these tax credits are removed.
- It could mean less investment from our partners and slower growth of the company.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 6 | 9 |
Wind Farm Project Manager (Houston, TX)
Age: 42 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Repealing these credits could mean project delays or cancellations.
- My future income might be affected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 8 |
| Year 2 | 6 | 9 |
| Year 3 | 6 | 9 |
| Year 5 | 7 | 9 |
| Year 10 | 7 | 10 |
| Year 20 | 7 | 10 |
Electric Vehicle Developer (Detroit, MI)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This might increase costs for electric vehicle infrastructure.
- There could be less support for integrating renewable energy sources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 9 |
Retired Engineer (Phoenix, AZ)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I might see less return on my investments without tax incentives.
- This could reduce the overall viability of renewables as an investment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 8 |
| Year 2 | 6 | 9 |
| Year 3 | 7 | 9 |
| Year 5 | 7 | 9 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 10 |
Utility Executive (Raleigh, NC)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Higher energy costs could result from this policy.
- Our future energy mix plans might need reevaluation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 7 | 9 |
Farmer (Boise, ID)
Age: 65 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- The change might make it more costly to maintain our solar setup.
- Agriculture depends heavily on stable energy prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 9 |
Tech Startup CEO (New York, NY)
Age: 30 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Policy changes might increase operational costs unexpectedly.
- This affects our strategic planning for growth and sustainability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 10 |
Retired School Teacher (Miami, FL)
Age: 74 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Uncertainty about the future costs of energy.
- I hope my fixed income will not be affected too much.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 8 |
| Year 20 | 6 | 8 |
College Student (Seattle, WA)
Age: 22 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- It might become more challenging to find jobs in my field after graduation.
- This policy seems to go against the push for a greener future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 6 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 9 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 10 |
Environmental Activist (Chicago, IL)
Age: 40 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy could significantly setback our efforts to promote clean energy.
- We will need additional strategies to combat its effects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 8 |
| Year 2 | 5 | 8 |
| Year 3 | 6 | 9 |
| Year 5 | 6 | 9 |
| Year 10 | 7 | 9 |
| Year 20 | 7 | 10 |
Cost Estimates
Year 1: $-3500000000 (Low: $-3000000000, High: $-4000000000)
Year 2: $-3570000000 (Low: $-3050000000, High: $-4100000000)
Year 3: $-3640000000 (Low: $-3100000000, High: $-4200000000)
Year 5: $-3800000000 (Low: $-3300000000, High: $-4500000000)
Year 10: $-4000000000 (Low: $-3500000000, High: $-4800000000)
Year 100: $-4000000000 (Low: $-3500000000, High: $-4800000000)
Key Considerations
- Renewable energy is integral to reducing carbon emissions, and slowing its growth could have environmental repercussions.
- The potential impact on energy prices could affect low-income households disproportionately.
- While the government saves on tax expenditures, there might be larger economic losses if renewables' growth stalls.