Tax Incentives for Renewable Energy: Impacts and Analyses


Spencer Mills (Editor)

Series: Energy Policies, Politics and Prices
BISAC: LAW086000, SCI024000

Federal tax credits for renewable energy (RE) have served as one of the primary financial incentives for RE deployment over the last two decades in the United States. In December 2015, RE tax credits, including the wind power production tax credit and solar investment tax credits, were extended as part of the Consolidated Appropriations Act of 2016. The act extended the solar and wind tax credit deadlines by five years from their prior scheduled expiration dates, but included ramp downs in tax credit value during the latter years of the five-year period. This book explores two specific questions: (1) How might RE deployment in the contiguous United States change with these recent federal tax credit extensions? (2) How might this change in RE deployment impact carbon dioxide (CO2) emissions in the power sector? This book also compares the relative costs, benefits, and implications of capturing the value of renewable energy tax benefits in three different ways – applying them against outside income, carrying them forward in time until they can be fully absorbed internally, or monetizing them through third-party tax equity investors– to see which method is most competitive under various scenarios. (Imprint: Novinka)



Table of Contents


Chapter 1. Impacts of Federal Tax Credit Extensions on Renewable Deployment and Power Sector Emissions
Trieu Mai, Wesley Cole, Eric Lantz, Cara Marcy, and Benjamin Sigrin

Chapter 2. An Analysis of the Costs, Benefits, and Implications of Different Approaches to Capturing the Value of Renewable Energy Tax Incentives
Mark Bolinger


Additional information