Question 1

How are the credits generated?

Accepted Answer

In the case of Investment Tax Credits (ITCs), the credits are generated and available for transfer when a renewable energy project is Placed in Service in accordance with the IRS’ 5 factor rule.  The Production Tax Credits (PTC) are a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a renewable system's operation. It is adjusted annually for inflation.

Question 2

How is Green Credits different than credit marketplaces?

Accepted Answer

Using a marketplace to sell credits is a simpler transaction. However, you pay for this simplicity through lower pricing and reduced valuation. Green Credits helps a sponsor to unlock and monetize the true value of their project at superior pricing.  Green Credits achieves this through a combination of an investment in the project at fair market value.

Because of the optimized capital structure resulting from Green Credits' participation, Green Credits can offer better pricing to the credit buyers as well. and customized credit buyers.

Question 3

What is the difference between Investment Tax Credits and Production Tax Credits?

Accepted Answer

Investment Tax Credits (ITC) are a one-time credits available immediately upon the renewable energy project being Placed in Service. The amount of the credits is based on the tax basis in the renewable energy property.

The production tax credits (PTC) are a per kilowatt-hour (kWh) tax credit for electricity generated renewable energy projects for the first 10 years of a system's operation. It is adjusted annually for inflation.

Frequently Asked Questions

How are the credits generated?

How is Green Credits different than credit marketplaces?

What is the difference between Investment Tax Credits and Production Tax Credits?