Common use of Tax Incentives Total Compensation Reduction Clause in Contracts

Tax Incentives Total Compensation Reduction. If at any time prior to the end of the Term, any Person (including Owner or Owner’s Lender, parent, or other Affiliate) realizes any economic or monetary benefit with respect to the Project from Energy Storage Incentive Legislation or other federal or state incentives enacted after the Effective Date (“Economic Benefit”), which Owner shall diligently pursue in accordance with Section 4.1(u), the Total Compensation Amount shall be reduced by an amount equal to seventy percent (70%) of the realized Economic Benefit (the “Reduction Amount”). Owner shall provide Notice to CHGE within seven (7) Business Days of realizing any Economic Benefit. If Owner fails to provide such Notice within the seven (7) Business Days period, the Reduction Amount shall be increased by applying the Default Interest Rate to the Reduction Amount for each Calendar Day after the end of the seven (7) Business Days period and before the Calendar Day Owner provides the notice. If the Economic Benefit is realized on or before the Commercial Operation Date, then the Total Compensation Amount shall be reduced automatically by the Reduction Amount with immediate effect. If the Economic Benefit is realized after the Commercial Operation Date, then the remaining Annual Post-Commercial Operation Payments shall be reduced by applying the Reduction Amount to each payment in the order of their respective due dates. In the event that the Reduction Amount is greater than the sum of the remaining Annual Post- Commercial Operation Payments, Owner shall pay CHGE the amount of such excess within thirty (30) Calendar Days of providing the Notice to CHGE required under Section 3.6(b)(ii). For purposes of determining when an Economic Benefit is realized under Section 3.6(b)(ii), realization will be deemed to have occurred upon the earliest occurrence of any of the following: (A) the closing of any Tax Equity Financing for the Project by Owner, Owner’s parent or other Affiliate, (B) a transfer of any income tax credits generated as a result of Energy Storage Incentive Legislation, (C) the use of any income tax credits on the federal income tax return (on the date such return is filed) of any entity, or (D) the date upon which Owner realizes an Economic Benefit not otherwise listed in this Section 3.6(b)(iv).

Tax Incentives Total Compensation Reduction. If at any time prior to the end of the Term, any Person (including Owner or Owner’s Lender, parent, or other Affiliate) realizes any economic or monetary benefit with respect to the Project from Energy Storage Incentive Legislation or other federal or state incentives enacted after the Effective Date (“Economic Benefit”), which Owner shall diligently pursue in accordance with Section 4.1(u), the Total Compensation Amount shall be reduced by an amount equal to seventy _____ percent (70%XX%) of the realized Economic Benefit (the “Reduction Amount”). Owner shall provide Notice to CHGE RG&E within seven (7) Business Calendar Days of realizing any Economic Benefit. If Owner fails to provide such Notice within the seven (7) Business Calendar Days period, the Reduction Amount shall be increased by applying the Default Interest Rate to the Reduction Amount for each Calendar Day after the end of the seven (7) Business Calendar Days period and before the Calendar Day Owner provides the notice. If the Economic Benefit is realized on or before the Commercial Operation Date, then the Total Compensation Amount shall be reduced automatically by the Reduction Amount with immediate effect. If the Economic Benefit is realized after the Commercial Operation Date, then the remaining Annual Post-Commercial Operation Payments shall be reduced by applying the Reduction Amount to each payment in the order of their respective due dates. In the event that the Reduction Amount is greater than the sum of the remaining Annual Post- Commercial Operation Payments, Owner shall pay CHGE RG&E the amount of such excess within thirty (30) Calendar Days of providing the Notice to CHGE RG&E required under Section 3.6(b)(ii). For 3.6(b)(ii).For purposes of determining when an Economic Benefit is realized under Section 3.6(b)(ii), realization will be deemed to have occurred upon the earliest occurrence of any of the following: (A) the closing of any Tax Equity Financing for the Project by Owner, Owner’s parent or other Affiliate, (B) a transfer of any income tax credits generated as a result of Energy Storage Incentive Legislation, (C) the use of any income tax credits on the federal income tax return (on the date such return is filed) of any entity, or (D) the date upon which Owner realizes an Economic Benefit not otherwise listed in this Section 3.6(b)(iv).

Tax Incentives Total Compensation Reduction. If at any time prior to the end of the Term, any Person (including Owner or Owner’s Lender, parent, or other Affiliate) realizes any economic or monetary benefit with respect to the Project from Energy Storage Incentive Legislation or other federal or state incentives enacted after the Effective Date (“Economic Benefit”), which Owner shall diligently pursue in accordance with Section 4.1(u), the Total Compensation Amount shall be reduced by an amount equal to seventy _____ percent (70%XX%) of the realized Economic Benefit (the “Reduction Amount”). Owner shall provide Notice to CHGE NYSEG within seven (7) Business Calendar Days of realizing any Economic Benefit. If Owner fails to provide such Notice within the seven (7) Business Calendar Days period, the Reduction Amount shall be increased by applying the Default Interest Rate to the Reduction Amount for each Calendar Day after the end of the seven (7) Business Calendar Days period and before the Calendar Day Owner provides the notice. If the Economic Benefit is realized on or before the Commercial Operation Date, then the Total Compensation Amount shall be reduced automatically by the Reduction Amount with immediate effect. If the Economic Benefit is realized after the Commercial Operation Date, then the remaining Annual Post-Commercial Operation Payments shall be reduced by applying the Reduction Amount to each payment in the order of their respective due dates. In the event that the Reduction Amount is greater than the sum of the remaining Annual Post- Commercial Operation Payments, Owner shall pay CHGE NYSEG the amount of such excess within thirty (30) Calendar Days of providing the Notice to CHGE NYSEG required under Section 3.6(b)(ii). For 3.6(b)(ii).For purposes of determining when an Economic Benefit is realized under Section 3.6(b)(ii), realization will be deemed to have occurred upon the earliest occurrence of any of the following: (A) the closing of any Tax Equity Financing for the Project by Owner, Owner’s parent or other Affiliate, (B) a transfer of any income tax credits generated as a result of Energy Storage Incentive Legislation, (C) the use of any income tax credits on the federal income tax return (on the date such return is filed) of any entity, or (D) the date upon which Owner realizes an Economic Benefit not otherwise listed in this Section 3.6(b)(iv).