Bill Overview
Title: To amend the Internal Revenue Code of 1986 to provide an increased tax credit for combined photovoltaic and thermal technology.
Description: This bill allows increased residential energy efficiency property tax credit rates for combined photovoltaic and thermal technology expenditures.
Sponsors: Rep. Steube, W. Gregory [R-FL-17]
Target Audience
Population: Homeowners investing in residential energy-efficient technology
Estimated Size: 4400000
- The bill targets individuals who invest in residential energy efficiency upgrades, specifically for combined photovoltaic (solar energy) and thermal technology systems.
- This demographic includes homeowners who are likely to be interested in lowering their energy costs and increasing energy efficiency in their homes.
- Potential impact extends to industries related to photovoltaic and thermal technology as demand may increase as a result of the tax credit incentive.
- This bill will indirectly affect companies involved in the manufacturing, installation, and maintenance of photovoltaic and thermal systems, potentially boosting employment in these sectors.
Reasoning
- The policy targets homeowners who can afford to invest in energy-efficient technologies; hence, they're likely to be at least middle-income, impacting their potential Cantril wellbeing scores positively.
- Not all homeowners will be impacted uniformly, as those who cannot afford upfront costs even with tax credits might see no benefit.
- The policy may stimulate market growth in the solar and thermal industries, leading to economic opportunities and possibly affecting wellbeing indirectly.
- It's essential to include diverse profiles, such as those who won't benefit due to income limitations or rental status, to provide a balanced simulation.
Simulated Interviews
Engineer (Phoenix, AZ)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- I'm already looking into solar panels because of the sunny climate here.
- A tax credit would definitely make it financially easier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 10 | 8 |
| Year 20 | 10 | 8 |
Teacher (Boston, MA)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- I am all for eco-friendly solutions, but I'm not sure I can take advantage of this because of living in a condo.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Real Estate Agent (Houston, TX)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Tax credits like these increase home value, which is crucial for my business.
- This policy makes energy-efficient homes more attractive to buyers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Software Developer (Seattle, WA)
Age: 29 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I'm all for renewable energy policies, but as a renter, I don't see any personal benefit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Retired (Raleigh, NC)
Age: 60 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I wish this had been available when I installed my solar panels.
- It would have saved me a lot, but I'm glad others will have this opportunity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Small Business Owner (San Francisco, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- This policy could significantly reduce my energy costs.
- I believe it would also support local businesses in the solar industry.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 10 | 8 |
| Year 5 | 10 | 8 |
| Year 10 | 10 | 8 |
| Year 20 | 10 | 8 |
Contractor (Miami, FL)
Age: 52 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I expect this bill to increase the demand for eco-friendly renovations.
- My business could benefit from this shift.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Nurse (Chicago, IL)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- High upfront costs of solar devices are a concern even with tax credits.
- Would likely consider it if my energy costs were reduced significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Environmental Scientist (Portland, OR)
Age: 46 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- This measure supports the direction we need to move in to sustain our environment.
- Every bit counts, and this could encourage more homeowners to go green.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 10 | 9 |
| Year 10 | 10 | 9 |
| Year 20 | 10 | 9 |
Freelance Writer (Denver, CO)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- My priority is reducing my carbon footprint economically.
- With this policy, I can justify the investment towards solar.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $11000000000 (Low: $9000000000, High: $13000000000)
Year 2: $11400000000 (Low: $9400000000, High: $13400000000)
Year 3: $11800000000 (Low: $9800000000, High: $13800000000)
Year 5: $12400000000 (Low: $10400000000, High: $14400000000)
Year 10: $14000000000 (Low: $12000000000, High: $16000000000)
Year 100: $14000000000 (Low: $12000000000, High: $16000000000)
Key Considerations
- Monitoring the uptake of the tax credit to ensure policy goals are met.
- Expansion in the residential renewable energy market as a result of the credit, potentially aiding policy objectives in renewable energy adoption.
- Potential for technological improvements that could alter cost-benefit equations for photovoltaic and thermal installations.