Updated tax incentives defaults with passage of IRA

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The passage of the Inflation Reduction Act of 2022 impacts the value of the U.S. Investment Tax Credit available for many of the technologies modeled by REopt. Accordingly, the REopt default Federal incentive based on percentage of capital cost has been updated to 30% for PV, Wind, CHP, GHP, and Battery systems (from 26%, 26%, 10%, 10%, and 0%, respectively). This value assumes the project meets prevailing wage and registered apprenticeship requirements. See the White House Guidebook for more details.

2023 is also the first year of the phase-down of the MACRS bonus depreciation (per the Tax Cuts and Jobs Act of 2017). Accordingly, the REopt default value for MACRS bonus depreciation has been updated to 80% for PV, Wind, CHP, GHP, Battery, Hot Water Storage, and Chilled Water Storage.