Daniel E. Kwak (J.D. 2010, Oregon) has published Comment, Civilizing Society: The Need for a Carbon Tax in Light of Recent Changes to U.S. Energy Taxation Policy, 88 Or. L. Rev. 547 (2009). Here is part of the Conclusion:

Providing credits to taxpayers who invest in energy property has proven to be an effective way of encouraging energy property development. Allowing taxpayers to claim Treasury grants in lieu of these credits streamlines the process, further encouraging investments. Awarding credits for property financed by subsidized energy financing, however, amounts to a double-dip in federal funds and should not be allowed in an era during which the national debt increases every month.

In addition to reintroducing the section 48 limitation, Congress should pass a tax on carbon emissions. Rather than increasing taxation of income or other positive contributions to the economy, the government should shift its attention to environmentally harmful activities, and, with the recent passing of the American Recovery and Reinvestment Act of 2009, the timing may be right for a persuasive appeal to Congress. Political alliances and party promises will remain significant hurdles to gaining public support for a carbon tax. The bottom line, however, is clear: other countries have become savvy to the need for increased environmental taxation in energy policy, and it is time for the United States to follow suit.