The forecast for tax expenditure on all fossil fuels for producers in the US indicates a decline from 2024 to 2028. The value in 2023 stood at 3.07 billion USD, but it's projected to decrease each subsequent year from 2.95 billion USD in 2024 to 2.47 billion USD by 2028. Year-on-year variations show a steady decline at approximately -4% annually, highlighting a consistent downward trend. The compound annual growth rate (CAGR) over these five years reflects a -4% change, emphasizing the gradual reduction in fossil fuel tax expenditures by 2028.
Future trends to watch for include:
- The impact of evolving environmental policies, possibly leading to further reductions in fossil fuel incentives.
- Potential shifts in energy production preferences towards renewable sources, further influencing tax expenditure forecasts.
- Changes in the global energy market that could alter the pricing and demand for fossil fuels, subsequently affecting tax policies.
