Energy: wind with PTC and MACRS

A wind project claiming the production tax credit over ten years and depreciating on the MACRS five-year schedule.

Every number below is checked against an independent reference implementation on every commit — period by period, and on each metric, inside a declared tolerance. See benchmark methodology.

The case

A 30 MW wind project selling at merchant prices, claiming the production tax credit over its first ten years, and depreciating on the five-year MACRS schedule. Project debt runs underneath. The credit runs for ten years, depreciation for five and the debt for longer than either, so the cash flow shape changes twice before the hold ends.

The reference

Project-finance conventions for a merchant wind asset with federal tax attributes: the production credit's inflation adjustment and statutory ten-year window, and the MACRS half-year convention.

Not redistributable. The source cannot be published, so its conventions are recreated independently of the model and compared period by period.

What it exercises

The result

Present value −5,452,881.52, lifetime revenue 90,382,400.52 and lifetime EBITDA 58,795,819.78.

Asserted: net cash flow per period, plus the three summary figures.

The delta

None: every period agrees inside a one-cent tolerance, including the periods where the credit expires and where depreciation runs out.

Run configuration

{
  "deterministic": {
    "annual_discount_rate": 0.075
  }
}

Verified results

Checked period by period: 1 series across 240 periods — 240 values in all, each within ±0.01 of the reference.

• net_cash_flow

Summary metrics for the base run: