The forecasted tax expenditure on end-use electricity for US consumers shows a gradual decline from $1.06 billion in 2024 to $1.0 billion by 2028, using constant 2020 dollars. This trend indicates a steady year-on-year reduction of around 1-2%, reflecting efficiencies and potentially reduced reliance on tax incentives over time. As we stand in 2024, expenditures have decreased from their levels in 2023, signaling a continuation of this downward trajectory.
Looking ahead, several factors could influence future trends in tax expenditure:
- Technological advancements potentially reducing costs of electricity.
- Changes in energy policy and tax legislation.
- Growth in renewable energy adoption impacting overall tax incentive structures.
