The Production Tax Credit (PTC)

The T-REX Platform for Modeling and Managing the Production Tax Credit.
The Production Tax Credit (PTC) was initially enacted in 1992, and has since been extended and lapsed by successive Presidential administrations. In the PTC’s current form, the 1 – 2.1¢ tax credit per kWH of energy produced has been a driving factor of the wind energy sector’s growth.

The PTC has led wind energy to become a leading contributor in the renewables sector AND fueled the explosive growth of renewables as a percent of total energy market share. However, the fiscal advantages of the tax credit have not been without operational headaches.

Modeling the tax credit into pre-construction models adds significant complexity. That complexity significantly multiplies when the tax equity is itself financed. Monitoring the performance of projects now requires calculating and reporting on the tax credit and interfacing between accounting, finance, and development teams.

T-REX can help simplify the entire process. You can now model energy Projects on T-REX, inclusive of all available tax credits. Production stress tests can be used for an unlimited number of scenarios to project the PTC forward. Finally, with T-REX Performance Data Services, every relevant data point can be captured to monitor and report on PTC generation. All this while rolling up across a full portfolio of generating assets!

Contact one of our experts to learn more.

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