In 2023, US tax expenditure on petroleum for electricity generation, when adjusted to 2020 dollars, was notably stable. Forecasted data from 2024 to 2028 indicates a gradual rise, starting at $9,000 in 2024 and reaching $11,000 by 2028. The forecasted data shows a year-on-year increase, with the expenditure expected to jump by approximately 10% each year through 2027, stabilizing slightly thereafter. Over a five-year span from 2024 to 2028, a compound annual growth rate (CAGR) of around 6% is observed.
Future trends to watch include the availability and advancement of renewable energy technologies, policy shifts towards greener energy, and changes in global oil markets which could influence petroleum prices and, in turn, impact tax expenditure dynamics. Monitoring government policies targeting energy efficiency and carbon emissions reduction will also be important as they may alter these forecasts significantly.
