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Catching Up: Russia, Oil, Natural Gas, Policy and Clean Tech Promises
ARC ENERGY IDEAS
Is the Production Tax Credit More Competitive Than the Investment Tax Credit?
A production credit, for example, says a solar manufacturer actually gets the credit when they produce a solar panel and they get effectively a bonus for producing. For clean hydrogen, it would be price is associated with each kilogram of hydrogen that you may produce in a production tax credit. But getting 30% off the initial cost of building your manufacturing plant is a small number compared to getting a certain amount of money for each widget you produce over the next 10 years. So it gets very complicated, but in each situation is unique.
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