Energy Tax Incentives and the Alternative Minimum Tax

Curtis Carlson, Gilbert E. Metcalf

NBER Working Paper No. 14110
Issued in June 2008
NBER Program(s):   EEE   PE

We take a first look at limitations on the use of energy-related tax credits contained in the General Business Credit (GBC) due to limitations within the regular corporate income tax as well as the AMT. Between 2000 and 2005, firms were unable to use all energy-related tax credits due to GBC limitations in the regular tax. The AMT has a smaller but still pronounced impact on the ability of firms to use these credits. Finally, we provide some illustrative calculations to demonstrate how the AMT can lead to very different levelized costs of producing electricity from a wind power project.

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This paper was revised on December 5, 2011

Acknowledgments

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