CRA Insights

Federal Tax Credit implications and monetization strategies for power producers and utilities

February 7, 2023
solar energy panels and wind turbines

The energy tax credit provisions in the Inflation Reduction Act (IRA) are broad reaching as the legislation extends the lives of the popular Investment Tax Credit (ITC) and the Production Tax Credit (PTC), expands the list of technologies eligible for these credits, and provides opportunities for utilities and project developers to increase the credits’ value by meeting certain criteria.

Renewable resource owners now have significant flexibility to pursue a variety of tax credit and monetization strategy combinations. But this flexibility introduces questions about which strategy combination maximizes value for resource owners. In this CRA Insights, we explore which factors influence the optimal ITC/PTC monetization strategy under various cost and operating conditions.

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