The forecasted tax expenditure on petroleum for fossil fuel production in the US shows a clear, increasing trend from 2024 to 2028. Starting at approximately -933 million USD in 2024, it is expected to reach around -2.06 billion USD by 2028. This represents a consistent annual increase with negative growth indicating higher subsidies or tax reductions for fossil fuel production each year.
Year-on-year, the tax expenditure is planned to grow significantly, with an average compound annual growth rate (CAGR) suggesting a substantial rise over the five-year period. Compared to the last actual figure from 2023, this trend signals a notable fiscal policy shift towards supporting fossil fuel production through tax reductions.
Future trends to watch for include governmental policy changes in response to environmental concerns that may affect these tax expenditures. Additionally, fluctuations in global oil prices and the transition to renewable energy sources could significantly impact these forecasts.
