Exploring Tax Credits in Business: Direct Pay vs. Transferability

The chapter discusses the challenges businesses face in using tax credits, focusing on the concept of 'direct pay' tax credits as a potential solution. It explores the historical context and legislative complexities of tax credits, emphasizing their significance in US clean energy policy. The conversation delves into the benefits and implications of transferable tax credits, contrasting them with direct pay credits and highlighting the potential for increased market participation and liquidity.