I Focus on wind, solar, battery, & EV Charger Tax Credits

A qualifying project can generate PTCs that are recognized over 10 years in lockstep with electricity production. Historically, most wind projects have generated PTCs. PTCs generated in 2026 have a base value of $30 per megawatt-hour of electricity generated. Therefore, the value of PTCs available from a project in a given year is equal to the PTC value multiplied by the number of megawatt-hours produced during the year. The PTC value can be increased if a project is located in select census tracts, benefits low-income communities, or uses United States manufactured equipment. PTCs are typically acquired by buyers who prefer a straightforward tax credit calculation method and wish to pursue a deal that will reduce a buyer's tax liability over multiple years.

A qualifying project can generate an ITC that has a base value equal to 30% of the project's eligible basis. For example, a project with a fair market value of $100 million may generate an ITC worth approximately $30 million. Most solar and battery projects utilize ITCs, and recently, many wind projects do as well. The ITC value can be increased if a project is located in select census tracts, benefits low-income communities, or uses United States manufactured equipment. The ITC is recognized over one year and is often preferred by buyers who are prepared to conduct due diligence on the ITC eligible basis in connection with a deal that will reduce the buyer's tax liability significantly in a single year.

A qualifying EV charger project can generate a 30C tax credit equal to 30% of the project's eligible basis. Like the ITC, 30C tax credits can be used by buyers to reduce a tax liability in a single year. Since individual EV charger projects generate relatively modest tax credit amounts (no more than $100,000 per tax credit eligible property), tax credits from multiple projects are often aggregated into larger tax credit purchase sizes that are attractive to institutional investors.