In fiscal year 2015, the federal government supported the development, production, and use of fuels and energy technologies through tax preferences totaling $15.8 billion and spending by the Department of Energy totaling $5.4 billion.
Science and Research and Development
The federal government influences innovation through two broad channels: spending and tax policies, and the legal and regulatory systems. Policymakers have a number of options for spurring additional innovation.
In 2012, the federal government spent $531 billion on investment—for physical capital; research and development; and education and training—which represented 15 percent of federal spending and 3 percent of GDP.
CBO's report assesses how the credits affect the relative cost of owning an electric vehicle, and how cost-effectively the credits reduce gasoline consumption and greenhouse gas emissions.
CBO’s analysis suggests that the projected high cost of using CCS means that current federal programs are unlikely to support widespread use of the technology. The study discusses several other options that lawmakers might consider.