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Internal Revenue Code of 1986

The official body of U.S. federal tax laws.

Tax Credit

A direct reduction in the amount of tax owed. For example, a $1,000 tax credit reduces your tax bill by $1,000, unlike a deduction which only reduces your taxable income.

Tax Deduction

An amount that can be subtracted from your gross income to reduce the amount of income subject to tax.

Green Energy Tax Subsidies

Tax breaks, credits, or deductions designed to encourage the production or use of renewable energy sources or energy-efficient technologies.

Biofuel

Fuel that is produced directly from living matter, such as plants or animal waste.

Carbon Oxide Sequestration

The process of capturing carbon dioxide (a greenhouse gas) from the atmosphere or industrial sources and storing it, often underground, to prevent it from entering the atmosphere.

Elective Payment (Direct Pay)

A mechanism that allows certain tax credits to be paid directly to the eligible entity as a refund, even if they don't owe enough in taxes to use the full credit. This is particularly useful for non-taxable entities like governments and non-profits.