1. The purpose and significance of fiscal and tax incentives Energy conservation is an area of ​​market failure. Many obstacles need to be overcome. It must be led by the government and given appropriate economic incentives. Energy conservation in the industrial sector has barriers at all stages of the product life cycle, as well as to all energy-saving actors (governments, businesses, consumers, banks, etc.). The purpose of fiscal and tax incentives is to overcome these obstacles.
(1) Enterprises are often unwilling or unable to invest in high-input, high-risk energy-saving scientific research projects. Therefore, government finance must invest in this area.
(2) Energy conservation in industrial enterprises is a highly dispersed secondary investment activity in many cases. The existing capital market operating mechanism makes investment biased towards energy development. This is true of all countries. Moreover, the uncertainty of energy prices has increased the risk of energy-saving investment in enterprises. Therefore, we must have appropriate fiscal and taxation policies to encourage them. Such as tax breaks, loan offers and guarantees.
(3) Many enterprises, especially small and medium-sized enterprises, have a small proportion of energy costs to product costs, or higher energy costs can be recovered through price increases. This makes the company lack the energy-saving enthusiasm and needs to adopt effective incentive policies.
(4) In the initial stage of entering the market, new energy-saving products have small batch sizes and high prices. It is necessary to promote its promotion through tax incentives, user subsidies, government procurement and other measures.
(5) Low-income families are unable to invest in energy conservation. The government is required to provide subsidies.
(6) Energy efficiency is often not the primary factor for consumers to consider terminal energy-consuming equipment and appliances. Incentives such as consumer subsidies are required.
(7) The transaction costs of obtaining reliable information for enterprises and consumers are high. The government wants to provide information services.
(8) Industrial products must successfully adopt international standards to successfully enter the international market and eliminate trade barriers. Financial support and economic incentives should be given to the formulation and implementation of energy efficiency standards.
(9) External costs such as damage to the environment by the company should be internalized. Energy taxes and environmental taxes can be imposed to reduce energy consumption and carbon dioxide emissions as well as damage to public health.
2, fiscal and tax incentives classification and function to promote energy-saving fiscal and taxation policies, according to their functions can be divided into two categories: one is to reduce energy-saving investment costs to promote energy-saving policies, and the second is to increase energy use costs to stimulate energy-saving investment policies.
2.1 Fiscal and taxation policies to reduce energy-saving investment Financial allocations 28 countries have included energy conservation in the public budget. Financial allocations are used for: national energy-saving technology research and development and demonstration projects, corporate energy-saving loan subsidies and guarantees, low-income household energy-saving subsidies, energy-saving policies and regulations research and development, corporate energy audits, energy efficiency standards labeling and implementation, energy-saving information services, energy-saving publicity Education, government agencies, energy conservation, etc.
Tax reductions and exemptions for energy-saving technologies and equipment that meet the specified requirements have been implemented in 23 countries; specific energy-saving equipment is accelerated to depreciate; and enterprises or industries that meet the predetermined energy-saving targets are tax-deductible.
Loan incentives provide low-interest loans or discount loans for energy-saving projects, which have been implemented in 21 countries; guarantees for loans for energy-saving projects.
2.2 Fiscal and taxation policies that increase energy use costs impose energy and environmental taxes on specific fuels and electricity and different users, increase energy use costs to promote energy-saving investments, reduce consumption of taxed energy, and reduce carbon dioxide and atmospheric pollutant emissions. There are 12 countries in Europe that levy environmental taxes, usually carbon dioxide taxes (carbon taxes), the United Kingdom called the climate change tax, and Germany called the ecological tax. Energy tax and environmental tax are a kind of neutral tax, that is, while collecting such taxes, reduce corporate income tax to reduce the negative impact on enterprises.
The high cost of energy tax and environmental tax management may adversely affect the competitiveness of low-income people and certain industries, and it is still controversial.
3. Implementation of fiscal and tax incentives
3.1 The implementation of fiscal and taxation policies that promote energy conservation in conjunction with new energy-saving mechanisms is often combined with new energy-saving mechanisms. The fiscal and tax incentives are necessary conditions and components for the implementation of new energy-saving mechanisms. These new energy-saving mechanisms include: power demand side management, energy service companies, voluntary agreements on energy conservation and emission reduction, industrial energy efficiency networks, energy efficiency standards and labeling, government procurement, etc.
3.2 Fund Public Welfare Fund The Public Welfare Fund is a fund that provides public services and safeguards the public interest in areas that cannot fully rely on market competition. It is a new energy-saving incentive mechanism. The charity fund is used to fund energy conservation and renewable energy technology research and development, energy conservation projects and low-income families. Funds are usually raised by collecting electricity surcharges. In the United States, 25 states have established public welfare funds with an average electricity surcharge of 1.1 mills/kWh (1mill = $0.001). Public welfare funds are administered by state or non-profit organizations.
The Energy Conservation Fund Energy Conservation Fund is usually a revolving fund established by the government and is a long-term and stable energy-saving funding channel. The energy conservation fund established by the Thai government in 1992 has now reached 5 billion US dollars and is one of the world's largest energy conservation funds. The fund is mainly derived from refined oil taxation, and currently invests 60 million to 80 million US dollars annually. The fund is mainly used for demand side management plans implemented by the Thai government. The Energy Conservation Fund is managed by the Department of Energy Conservation and Alternative Energy Development.
The Innovation Fund Energy Conservation Innovation Fund provides energy-saving loans and loan guarantees through the use of guarantee funds, revolving funds and venture funds through energy-saving investment by participating energy service companies. Energy-saving innovation funds have been established in 29 countries.
3.3 Management of fiscal and tax incentives and measures The energy conservation tax incentives are managed by government agencies and relevant energy conservation organizations in accordance with the law.
In Japan, the tax reduction of investment in energy-saving equipment of enterprises is proposed by the Ministry of Economy, Trade and Industry, and the list of target equipment that can enjoy tax incentives. The energy-saving equipment manufacturer first writes a certificate certifying that the equipment meets the tax preferential conditions and submits it to the industry association; After the review, the energy conservation center will be submitted to the Energy Conservation Center for approval. If there is any doubt, the Department of Resources and Energy will consult with the relevant departments of the Ministry of Economy, Trade and Industry, and the General Affairs Department, the Ministry of Health, the Ministry of Environment, and the Ministry of Environment and Environment. And then send the user; the user certificate is reported to the tax authorities.
(1) Enterprises are often unwilling or unable to invest in high-input, high-risk energy-saving scientific research projects. Therefore, government finance must invest in this area.
(2) Energy conservation in industrial enterprises is a highly dispersed secondary investment activity in many cases. The existing capital market operating mechanism makes investment biased towards energy development. This is true of all countries. Moreover, the uncertainty of energy prices has increased the risk of energy-saving investment in enterprises. Therefore, we must have appropriate fiscal and taxation policies to encourage them. Such as tax breaks, loan offers and guarantees.
(3) Many enterprises, especially small and medium-sized enterprises, have a small proportion of energy costs to product costs, or higher energy costs can be recovered through price increases. This makes the company lack the energy-saving enthusiasm and needs to adopt effective incentive policies.
(4) In the initial stage of entering the market, new energy-saving products have small batch sizes and high prices. It is necessary to promote its promotion through tax incentives, user subsidies, government procurement and other measures.
(5) Low-income families are unable to invest in energy conservation. The government is required to provide subsidies.
(6) Energy efficiency is often not the primary factor for consumers to consider terminal energy-consuming equipment and appliances. Incentives such as consumer subsidies are required.
(7) The transaction costs of obtaining reliable information for enterprises and consumers are high. The government wants to provide information services.
(8) Industrial products must successfully adopt international standards to successfully enter the international market and eliminate trade barriers. Financial support and economic incentives should be given to the formulation and implementation of energy efficiency standards.
(9) External costs such as damage to the environment by the company should be internalized. Energy taxes and environmental taxes can be imposed to reduce energy consumption and carbon dioxide emissions as well as damage to public health.
2, fiscal and tax incentives classification and function to promote energy-saving fiscal and taxation policies, according to their functions can be divided into two categories: one is to reduce energy-saving investment costs to promote energy-saving policies, and the second is to increase energy use costs to stimulate energy-saving investment policies.
2.1 Fiscal and taxation policies to reduce energy-saving investment Financial allocations 28 countries have included energy conservation in the public budget. Financial allocations are used for: national energy-saving technology research and development and demonstration projects, corporate energy-saving loan subsidies and guarantees, low-income household energy-saving subsidies, energy-saving policies and regulations research and development, corporate energy audits, energy efficiency standards labeling and implementation, energy-saving information services, energy-saving publicity Education, government agencies, energy conservation, etc.
Tax reductions and exemptions for energy-saving technologies and equipment that meet the specified requirements have been implemented in 23 countries; specific energy-saving equipment is accelerated to depreciate; and enterprises or industries that meet the predetermined energy-saving targets are tax-deductible.
Loan incentives provide low-interest loans or discount loans for energy-saving projects, which have been implemented in 21 countries; guarantees for loans for energy-saving projects.
2.2 Fiscal and taxation policies that increase energy use costs impose energy and environmental taxes on specific fuels and electricity and different users, increase energy use costs to promote energy-saving investments, reduce consumption of taxed energy, and reduce carbon dioxide and atmospheric pollutant emissions. There are 12 countries in Europe that levy environmental taxes, usually carbon dioxide taxes (carbon taxes), the United Kingdom called the climate change tax, and Germany called the ecological tax. Energy tax and environmental tax are a kind of neutral tax, that is, while collecting such taxes, reduce corporate income tax to reduce the negative impact on enterprises.
The high cost of energy tax and environmental tax management may adversely affect the competitiveness of low-income people and certain industries, and it is still controversial.
3. Implementation of fiscal and tax incentives
3.1 The implementation of fiscal and taxation policies that promote energy conservation in conjunction with new energy-saving mechanisms is often combined with new energy-saving mechanisms. The fiscal and tax incentives are necessary conditions and components for the implementation of new energy-saving mechanisms. These new energy-saving mechanisms include: power demand side management, energy service companies, voluntary agreements on energy conservation and emission reduction, industrial energy efficiency networks, energy efficiency standards and labeling, government procurement, etc.
3.2 Fund Public Welfare Fund The Public Welfare Fund is a fund that provides public services and safeguards the public interest in areas that cannot fully rely on market competition. It is a new energy-saving incentive mechanism. The charity fund is used to fund energy conservation and renewable energy technology research and development, energy conservation projects and low-income families. Funds are usually raised by collecting electricity surcharges. In the United States, 25 states have established public welfare funds with an average electricity surcharge of 1.1 mills/kWh (1mill = $0.001). Public welfare funds are administered by state or non-profit organizations.
The Energy Conservation Fund Energy Conservation Fund is usually a revolving fund established by the government and is a long-term and stable energy-saving funding channel. The energy conservation fund established by the Thai government in 1992 has now reached 5 billion US dollars and is one of the world's largest energy conservation funds. The fund is mainly derived from refined oil taxation, and currently invests 60 million to 80 million US dollars annually. The fund is mainly used for demand side management plans implemented by the Thai government. The Energy Conservation Fund is managed by the Department of Energy Conservation and Alternative Energy Development.
The Innovation Fund Energy Conservation Innovation Fund provides energy-saving loans and loan guarantees through the use of guarantee funds, revolving funds and venture funds through energy-saving investment by participating energy service companies. Energy-saving innovation funds have been established in 29 countries.
3.3 Management of fiscal and tax incentives and measures The energy conservation tax incentives are managed by government agencies and relevant energy conservation organizations in accordance with the law.
In Japan, the tax reduction of investment in energy-saving equipment of enterprises is proposed by the Ministry of Economy, Trade and Industry, and the list of target equipment that can enjoy tax incentives. The energy-saving equipment manufacturer first writes a certificate certifying that the equipment meets the tax preferential conditions and submits it to the industry association; After the review, the energy conservation center will be submitted to the Energy Conservation Center for approval. If there is any doubt, the Department of Resources and Energy will consult with the relevant departments of the Ministry of Economy, Trade and Industry, and the General Affairs Department, the Ministry of Health, the Ministry of Environment, and the Ministry of Environment and Environment. And then send the user; the user certificate is reported to the tax authorities.
The system to realize the automation of liquid level control is composed of hardware and software. The hardware mainly includes PLC touch screen and related CPU, memory, output and input, power supply and other modules. The on-site measurement includes all kinds of sensors and switches suitable for different on-site conditions. In addition, it also includes audible and visual alarm lights, control buttons and other related equipment. By configuring PLC liquid level display alarm instrument, it can realize the display of industrial field liquid level measurement, the alarm of high and low liquid level, as well as the opening and closing of pumps, valves and other equipment. It can realize unattended automatic workflow, greatly improve the production efficiency, save human cost, and bring about the increase of enterprise benefits, Lay the foundation for enterprises to take the lead in the severe competition in the future. Therefore, in the current situation, whether it is a new project or a transformation project, it is suggested that if conditions permit, starting PLC equipment is the priority.
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Taizhou Jiabo Instrument Technology Co., Ltd. , https://www.jbcbyq.com