Affordable energy is critical to industry and is a key lever of American progress. As the U.S. continues to work toward economic recovery, the most effective energy tax policies will encourage private investment in beneficial technologies while ensuring that the costs of those incentives are not inordinately borne by others. Newly published analysis by the U.S. Partnership for Renewable Energy Finance (US PREF) contends that the Investment Tax Credit for solar photovoltaic projects has been a success in reaching this objective. In Paid In Full: An Analysis of the Return to the Federal Taxpayer for Internal Revenue Code Section 48 Solar Energy Investment Tax Credit (ITC), US PREF argues that, over the life of solar assets under ITC, the tax credits actually increase revenue to the federal government, and represent no net subsidy, while at the same time effectively incentivizing investment in critical renewable energy technologies, thereby offering benefits to private parties, the government and the general public.
For additional information, contact Steve O’Day, or Lee J. Peterson, Esq., of Cohn Reznick.