T-REX offers a number of ways of modeling Tax, Tax Credit, and Depreciation Schedules on the platform.
Depreciation Basis
The user can define depreciation for each project, under Projects>CapEx&Tax.
The depreciation can be calculated based on COGS (Cost of Goods Sold) or FMV (Fair Market Value). COGS are defined as Total COGS and Ineligible COGS, the final basis will be based on Total COGS - Ineligible COGS.
The user can also set depreciation schedules, for state and federal depreciation. Note that the total depreciation schedule must sum up to 100%.
The user can decide if the depreciation schedules will be calculated on a yearly or monthly basis.
The user can define the tax basis to be ITC (Investment Tax Credit) or PTC (Production Tax Credit). Read more on the dedicated pages.
FMV Calculations
Fair Market Value = Fair Market Value $/W * Capacity (KW DC) * 1000
ITC= FMV * ITC%* ITC Reduction
Federal Deprecation= Basis for ITC- ITC* Federal Depreciation Schedule
State Deprecation= Basis for ITC- ITC* State Depreciation Schedule
COGS Calculations
Basis for ITC= Total COGS - COGS Ineligible
ITC= (Total COGS - COGS Ineligible) * ITC%
Federal Depreciation = COGS - ( ITC * ITC Reduction) * Federal Depreciation Sched
State Depreciation = COGS - ( ITC * ITC Reduction) * State Depreciation Sched
Depreciation Schedule Frequency
Monthly:
(Total COGS - COGS Ineligible)* Monthly Depreciation%
Yearly:
[ (Total COGS - COGS Ineligible)*Yearly Depreciation ] / 12