The Public Interest of Private Benefits: How Tax Free Energy Benefits Can Change How We Think About Efficiency

摘要

Despite decades of work to support comprehensive home energy efficiencyrnimprovements, these programs have not been able to achieve results at scale, and are reachingrnonly a small subset of the population, The key barriers are effective engagement and individualrnfinancial resources (including accessible, low-interest financing) to support these investments.rnEmployer-supported, tax-advantaged energy savings accounts could be a solution to thisrnproblem. Tax-advantaged employer benefits and savings accounts have grown considerably inrnthe past twenty years, and they represent an opportunity to enable individuals to save for andrninvest in efficiency and renewable energy improvements to their homes. For example, in 1981,rnonly 4.6 million U.S. employees were enrolled in a 401(k) plan. Today, the count is approachingrn70 million, with sixty percent of large employers automatically enrolling employees in arndedicated savings plan. Such accounts have also been used for health and child care expenses.rnEmployers can also provide tax-free transportation benefits to their employees. There are factorsrndriving this trend – including recognition of rising costs and the desire to enable individuals tornmake these important investments. These reasons hold true for energy efficiency and renewablernenergy investments, as overall energy costs are projected to rise and we see the environmentalrnimperative of encouraging investment in these areas. Additionally, such investments supportrnlocal job growth and increased discretionary income by decreasing monthly expenditures onrnenergy. This paper will investigate the origins of tax-advantaged savings accounts, and proposernhow a tax-free energy savings account could be designed and integrated into traditional benefitsrnpackages, informed by experience with creating and implementing energy benefits programs inrnmultiple states.