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Reduction Tax Credit (RTC) Overview and Impact Analysis

The Reduction Tax Credit (RTC) is an innovative proposal to use tax policy to promote investments in the demand-side of the electricity sector on par with clean energy incentives for supply-side resources such as generation and storage. The RTC is modeled on the Production Tax Credit (PTC) for wind, and similar in economic size, but measured in reductions of carbon dioxide (CO2) emissions that result from investments in qualifying demand-side electricity measures. This presentation summarizes the benefits of RTC and walks through the impact of this tax policy on carbon savings.

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