Notes and Sources

75.  Closed-loop biomass is defined as any organic material from a plant that is cultivated exclusively for use in producing electricity at a qualifying facility. 

76.  Solar installations received the credit for a brief period, from 2004 to 2005. Certain types of coal facilities can claim a tax credit under Section 45 of the U.S. Internal Revenue Code, and some qualifying nuclear plants may also claim a production tax credit. 

77.  Geothermal energy is also eligible for a 10-percent Federal ITC, but a facility cannot claim both credits. 

78.  Eligibility is limited to “incremental” generation resulting from capital investments at existing hydroelectric facilities. 

79.  Open-loop biomass includes waste and residue materials from certain agricultural, forestry, and urban or industrial processes. 

80.  Marine resources must be in service by December 31, 2011, to be eligible for the PTC. 

81.  See, for example, J.P. Harper, M.D. Karcher, and M. Bolinger, Wind Project Financing Structures: A Review & Comparative Analysis, LBNL-63434 (Berkeley, CA: Lawrence Berkeley National Laboratory, September 2007), web site http://eetd.lbl.gov/EA/EMP/ reports/63434.pdf. 

82.  C. Carlson and G.E. Metcalf, “Energy Tax Incentives and the Alternative Minimum Tax,” National Tax Journal, Vol. 61, No. 3 (September 2008), web site www.entrepreneur.com/tradejournals/article/ 190149936.html. 

83.  Because the projection does not show any use of closed-loop resources, the open-loop credit value is assumed. EIA currently does not model marine energy technologies. 

84.  Using a real discount rate of 7 percent. PTC costs for 2009, estimated at $3.6 billion, are not included.