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NATIONAL RENEWABLE ENERGY LABORATORY
Historically, federal incentives for renewable energy development in the United States largely consisted of the investment and production tax credits (ITC and PTC) and the accelerated depreciation benefit for renewable energy property [the Modified Accelerated Cost Recovery System (MACRS) and the bonus depreciation]. Both the ITC and the PTC provide financial incentives for development of renewable energy projects in the form of tax credits that can be used to offset taxes paid on company profits.