Introduction
Between 1970 and 1998, global energy use rose by about 70%, and
demand for energy continues to rise at a rate of about 2% each
year.(1) While energy use and resource
extraction fuel the global economy and development worldwide,
they pose serious environmental hazards. Increases in conventional
energy use mean parallel increases in emissions, including greenhouse
gasses, which mean more smog, more global warming effects, and
more risks to human and environmental health.
Renewable energy can reduce our dependence on fossil fuels, reduce
the harmful pollution currently associated with energy production
and consumption, and reduce our emissions of greenhouse gases.
Alternative heating and cooling systems that run on non-traditional,
renewable energy sources and produce fewer harmful emissions can
substantially reduce consumers’ energy costs. Geothermal
heat pump systems can reduce energy consumption by 25-75%.(2)
Photovoltaics and other solar energy systems don’t use fossil
fuels and produce no greenhouse gases; in fact, they produce no
atmospheric emissions.(3) The promotion
of these types of alternative fuel energy systems helps to decrease
our dependence on finite energy sources and the environmental
degradation that accompanies extraction and transportation.
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However, when compared to traditional sources
of energy, most renewables are still in the relatively early stages
of technological development and have very different cost structures,
with high up-front costs and low operating costs. That is why financial
incentives for the manufacture, purchase, and installation of alternative
systems are so critical to meeting the nation’s long-term
energy needs in a sustainable and responsible way. To help these
technologies develop and the markets adapt to changes, both federal
and state governments have offered a variety of tax incentives for
the manufacture, installation, and use of renewable energy systems.
This package focuses on ways to maximize the impacts of these incentives.
SERC’s package on renewable energy incentives
is designed to introduce you to the different types of incentives
that you can implement in your state. These include several types
of tax incentives (income, property, sales) for individuals and
businesses that manufacture or purchase renewable energy systems.
The background, talking points, and fact pack sections will help
you understand how and why such incentives make environmental and
economic sense for your state. In lieu of a sample bill, SERC has
included a thorough sampling of different strategies that states
can use to encourage the development and use of renewable energy.
Not all of these tax provisions will be appropriate for all states,
but many hold significant potential for altering individual and
business behavior in a manner consistent with environmental values.
By providing incentives for renewable energy projects, states can
reduce pollution, encourage technological development, and improve
economic growth.
This web site offers the tools necessary to introduce
and pass legislation to encourage the use of renewable energy in
your state. These tools include examples of effective state legislation,
talking points, press clips, a fact pack, links, and other background
information.
We may have other useful materials on this subject
which are not posted on our web site. Please feel free to contact
us at [email protected]
or call our office in Madison, Wisconsin, at (608) 252-9800.
If you’ve used this site and found it helpful,
or if you have suggestions about how it could be made more helpful,
please let us know. |