The Facts on Energy Subsidies

Fossil-fuel subsidies are practically as old as the fossil fuels themselves. The Congressional Research Service notes that for more than 90 years, fossil fuel industries have taken subsidies via generous tax breaks. They are seldom debated or even heard of, because they are permanent.  Most of the largest subsidies to fossil fuels were written into the U.S. Tax Code as permanent provisions. By comparison, many subsidies for renewables (a relatively young and developing industry) are time-limited initiatives implemented through energy bills.

American taxpayers have already paid well over $500 billion to fossil fuel industries. The Government Accountability Office concluded that fossil fuels continue to receive nearly five times the tax incentives as renewable energy.  The disparity is much greater when you consider hidden subsidies like health and environmental costs.

Energy Subsidies Black Not Green

Federal Electricity Subsidies (Government Accountability Office, October 2007).

An Analysis of Federal Incentives Used to Stimulate Energy Production (U.S. Department of Energy, and Analysis of Federal Expenditures of Energy Development (Management Information Services, Inc (MISI)., September 2008).