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The industry is a normal one is every respect with regards to tax, except in countries where the support regime takes the form of tax credits:

  • in the US, you used to get PTCs (production tax credits) ie a tax credit a 2c/kWh linked to your actual production, which increases the value of the generation if you have tax bills you can deduct these credits from (thus the practice of bringing in tax investors which lent their tax capacity to projects - Lehman Brothers was the most active). This has been replaced now by ITCs - Investment Tax credits (same mechanism, but upfront and linked to the investment made) or by direct cash grants, ie a non tax pechanism

  • in several countries, renewable energy projects can do accelerated depreciation, ie write off the value of their investment faster than normal, leading to accounting losses which create tax losses which can be deducted from later profits;

Otherwise, the main tax item is going to be the yearly licensing fees that projects need to pay to get the right to harvest the resource.

Wind power
by Jerome a Paris (etg@eurotrib.com) on Sun Oct 17th, 2010 at 09:24:48 AM EST
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