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This case study describes the reform of the Investment Promotion Law in Laos, supported by the International Institute for Sustainable Development (IISD). The reforms aim to address revenue leakage caused by overly generous tax incentives and align investment attraction with sustainable development priorities and fiscal stability.

This guide outlines the Renewables Investment for Social Equity (RISE) model, which enables tax-exempt entities to use the IRS 'direct pay' (elective pay) mechanism to deliver affordable solar energy to low- and moderate-income (LMI) households. The model allows tax-exempt organizations to own solar systems, install them at low or no upfront cost for residents, and recover costs via the Clean Electricity Investment Tax Credit (ITC).

In May 2024, the US Departments of Agriculture (USDA) and Housing and Urban Development (HUD) updated minimum energy standards for new construction, requiring new covered buildings under four stories to comply with the 2021 International Energy Conservation Code (2021 IECC) and taller buildings to meet ASHRAE/ANSI Standard 90.1-2019. These updates, combined with 45L tax credits from the Inflation Reduction Act (IRA), make high-performance multifamily housing financially viable, particularly for all-electric constructions and those in specific climate zones.

This report by RMI analyzes how updated energy efficiency standards and Inflation Reduction Act (IRA) tax incentives can reduce energy costs for low-income Americans by encouraging the construction of high-efficiency, all-electric homes.

This policy brief by RMI examines the economic competitiveness of renewable energy versus natural gas in Texas, specifically analyzing the impact of the expired Chapter 313 tax incentive program and proposed legislation (HB 5) that would exclude renewables from its successor.

This policy brief by RMI argues that the Build Back Better Act could be made more effective by allowing regulated utilities to opt out of 'tax normalization' requirements for stand-alone battery storage and transmission projects eligible for the Investment Tax Credit (ITC). While the bill introduces positive changes such as direct pay and the option for solar developers to use the Production Tax Credit (PTC), the author contends that current normalization rules force utilities to retain some ITC benefits for shareholders rather than passing them to customers, thereby increasing costs and disincentivizing the deployment of critical grid infrastructure.

This report analyzes the impact of the Zona Franca de Manaus (ZFM) industrial policy on the energy and productive efficiency of the air conditioning (AC) sector in Brazil. It finds that despite significant tax incentives, the sector has experienced a deterioration in efficiency between 2003 and 2015, partly due to restrictive Basic Productive Process (PPB) rules that favor outdated domestic compressor technology over more efficient international alternatives.

This report by the Climate Policy Initiative (CPI) analyzes whether the tax incentives provided to the Zona Franca de Manaus (ZFM) have improved the productive and energy efficiency of its industries compared to the rest of Brazil between 2003 and 2015. The study concludes that despite significant tax expenditures, there is no evidence that these incentives have increased efficiency, even in the region's most prominent industrial sectors.

This supplementary guidance note provides a framework and a financial modelling tool to help governments estimate the total cost of mining tax incentives, specifically focusing on the 'hidden' costs arising from investor behavioural responses. It details how to calculate direct costs, model behavioural changes such as high-grading and excessive interest deductions, and test these estimates through sensitivity analysis and scenario modelling.

This report by the Climate Policy Initiative and DIW Berlin presents findings from a survey of 78 thermal retrofitting practitioners to inform the German government's debate on tax incentives for residential building retrofits. The study evaluates the effectiveness of comprehensive versus single-measure retrofits, the appropriateness of the KfW 85 energy standard, the necessary timeframes for project completion, and the risks associated with stepwise implementation.

This report by the Climate Policy Initiative evaluates the potential for tax incentives to support thermal retrofits in Germany, comparing them with existing KfW loan and grant programs and international experiences from Italy, the Netherlands, and the United States.

This report details the findings of the Biodiversity Management Agreement (BMA) Tax Incentive Incubator, a project by the Sustainable Landscape Finance Coalition (including WWF-SA and Wilderness Foundation Africa). The incubator investigated how to unlock a dormant tax incentive under section 37C(1) of the Income Tax Act No. 58 of 1962 for the conservation management of species and habitats in South Africa. The investigation concluded that the necessary building blocks for the finance solution are present, leading to the launch of a pilot project targeting rhino and lion conservation between July 1, 2021, and June 30, 2022.