Production Tax Credit
Production based incentives are paid based on the actual energy produced by the system. A $/kWh is assigned for a period of time.
Below is an explanation of the various inputs in production based incentive:
| Variable | Description |
|---|---|
| Credit per kWh produced ($/kWh) | The credit per kWh of energy produced |
| Maximum annual credit ($/yr) | The upper limit on the amount of credit that can be given |
| Limit incentive duration (years) | The number of years that the production based credit is valid for |
| Credit is taxable | If the credit is taxable, the percent of the credit that is taxed |