Modelling for tax free holidays

Hi there,

I'm trying to model for a tax free holiday for the first 5 to 10 years of operation.

I've tried splitting it up into cases and then configuring the simulations using the multiple subsystems feature. The first case has an analysis period of 5 years with no tax to simulate the plants first five years of operation. While the second case has the remaining 25 years of operation with annual tax included. Both have a loan term of 20 years. The problem is that I can't find a way to simulate the 2 cases together. I can't seem to have them merge to a total of 30 years of plant life while at the same time have SAM make no changes to the designed plant capacity.

Is there some other proper way I can go about running a simulation that accounts for tax free holidays?


Thanks

There is not a way to model income tax holidays in SAM. There is also no way to model a single project cash flow by merging the cash flows from two cases.

The approach you describe might give you a rough idea of the value of the tax holiday to the project.

Best regards,
Paul.