Although the tax bill passed by Congress will bring the largest changes to taxes (and government revenue) seen in decades, we don’t expect the bill to have such a dramatic impact on energy efficiency.
The greatest impacts, both positive and negative, will likely come from the broad changes to tax and revenue. Some companies and families will have more money to spend on efficiency improvements (or on energy-using activities) as a result of the tax cuts; others will have less. The deduction for state and local taxes will be capped, which could make it more difficult for state and local governments to invest taxpayer dollars in efficiency upgrades and programs. Federal deficits will go up, which could increase pressures to cut agency spending, including on efficiency programs.
