Production tax credits

Production tax credits (PTCs) are government incentives that provide financial benefits to companies that generate renewable energy, such as wind or solar power. These credits directly reduce the amount of taxes a company owes based on the amount of clean energy they produce. The goal is to encourage investment in sustainable energy sources by making projects more financially attractive. Essentially, if a company produces renewable energy, the government offers a tax reduction, helping lower costs and promote the growth of clean energy infrastructure.