What are the Production Tax Credit (PTC) and the Investment Tax Credit (ITC)?
The Production Tax Credit (PTC) reduces the federal income taxes of qualified tax-paying owners of renewable energy projects based on the electrical output (measured in kilowatt-hours, or kWh) of grid-connected renewable energy facilities. The Investment Tax Credit (ITC) reduces federal income taxes for qualified tax-paying owners based on capital investment in renewable energy projects (measured in dollars). The ITC is earned when the equipment is placed into service. What is the Treasury cash grant? The cash grant is an option for ITC-eligible projects to receive the value of the ITC as a direct grant instead of as a tax credit. Eligible technologies can receive a cash grant covering up to 30% of the capital investment. Since the American Recovery and Reinvestment Act (ARRA) allowed PTC-eligible projects to elect the ITC instead, those projects can also elect to receive the cash grant. What is the Advanced Energy Manufacturing Tax Credit (MTC)? The Advanced Energy Manufacturing Tax C
