Tax Credit Extension: Impact on Renewables Investment and Emissions Outcomes

On December 18, 2015, Congress passed extensions to the investment tax credit (ITC) and production tax credit (PTC) for renewable energy projects. The extension of these tax credits is widely anticipated to have significant implications for the electric power sector, including a potentially substantial boost in near-term renewable energy investment and an accelerated reduction of greenhouse gas emissions. This issue brief summarizes the tax credits and their potential impacts.