Less Certain Than Death: Using Tax Incentives to Drive Clean Energy Innovation

December 2, 2019


If properly targeted, tax incentives have the potential to accelerate innovation in clean energy technologies that are poised to be adopted rapidly.
Tax incentives intended to accelerate the deployment of clean-energy technologies were expanded significantly in the 2000s. However, design flaws and tinkering by Congress has limited their impact on innovation.
The U.S. tax system should be a more powerful tool to accelerate clean energy innovation. Congress should target opportunities when they are ripe, drive the market forward, and sunset federal support as technologies mature.