Legislative comment: the Windfall Profit Tax Act and taxpayer double dipping

The Windfall Profit Tax Act amends the Energy Tax Act to limit taxpayer double dipping - receiving both government energy grants or government-subsidized financing and the residential solar income tax credit. The Internal Revenue Code also prevents a reduction in capital gains tax on sale of the taxpayer's residence, based on an energy expenditure for which a tax credit is given. Although these provisions preserve a certain symmetry in the tax code, they reduce the incentives for solar and conservation expenditures.