In 2023, the tax expenditure on all fossil fuels for residential use in the US stood at approximately $1.80 billion (2020 constant dollars). From 2024 onwards, an incremental decline is forecast, decreasing from $1.79 billion in 2024 to $1.74 billion by 2028. The yearly reductions are subtle, with an average annual decline of about 0.7% over these five years.
Future trends to watch for include shifts in energy policy under potential new regulations aimed at reducing fossil fuel dependence. Observing the impact of renewable energy adoption and energy efficiency technologies on tax expenditures will be essential.
