\nhttps:\/\/datawrapper.dwcdn.net\/GZhnA\/4\/\n<\/div><\/figure>\n\n\n\n
To mirror existing federal production tax credits like those for renewable energy, the model has been set up so that facilities are eligible to receive the clean heat production tax credit for 10 years as long as the clean heat equipment is installed by 2035. For example, if a facility installs clean heat equipment in 2029, they would be eligible to receive the tax credits until 2039. If a facility installs clean heat equipment in 2037, they would not be eligible to receive the tax credit.<\/p>\n\n\n\n
The model can be run with annual caps on tax credit expenditure by the state. Capping the annual expenditure the state makes on tax credits slows down the transition to electrified industrial heat. The results shown in this paper reflect an uncapped PTC.<\/p>\n\n\n\n
Model results should be considered conservative for several reasons. The model does not presume any wider market catalyzation from the PTC that leads to additional emissions reductions without the incentive. Relatedly, once the tax credit expires, the transition to clean heat technology plateaus; due to lack of incentives in the 2040s we see a halt to new deployments of clean heat equipment.<\/p>\n\n\n\n
The model does not presume any economies of scale for the price of the e-boilers and heat pumps due to increased deployment, so the prices for clean heat equipment do not decrease with scale. Also, existing natural gas boilers are not replaced with e-boilers and heat pumps until the end of the existing equipment\u2019s useful life, regardless of how generous the PTC for clean heat may be. Although policy may be structured to allow for high-heat applications to receive the production tax credit, due to limited technology options today for clean high heat application, the model does not estimate high-heat applications switching to clean heat equipment.<\/p>\n\n\n\n
Endnotes<\/h3>\n\n\n\n
![\"\"](\"https:\/\/rmi.org\/app\/uploads\/2026\/05\/rmi-placeholder.jpg\")
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"},"meta":[]},{"ID":34802,"title":"Accelerating Industrial Clean Heat with a Production Tax Credit","altTitle":"Accelerating Industrial Clean Heat with a Production Tax Credit","subtitle":null,"url":"https:\/\/rmi.org\/resources\/accelerating-industrial-clean-heat-with-a-production-tax-credit\/","slug":"accelerating-industrial-clean-heat-with-a-production-tax-credit","content":"\n\n\n\n\n\n\n