What exactly is a "tax credit"?
From the article
For example, Oregon helps pay to install auxiliary diesel generators that help trucks save more than 80 percent of fuel used when idling. The units cost $4,000 to $14,000 but pay for themselves within four to 24 months, according to Cascade's marketing materials.
With Oregon taxpayers covering 35 percent of that cost through BETC, it's no surprise that "efficient truck technology" incentives have seen the same kind of explosive growth that has caused deep concern about the state's entire energy subsidy program. In 2006, Oregon taxpayers were on the hook for $173,287 to outfit trucks with fuel-saving equipment. By 2009, that amount topped $4 million.
The company currently has 817 trucks listing Oregon as their base state -- one of the main criteria for BETC eligibility. Between 2007 and 2009, Mesilla received final approval for 752 tax credits, according to state records. The underlying cost of the upgrades was $12.8 million, of which Oregon taxpayers covered 35 percent, or nearly $4.5 million.
Mesilla, like many recipients, sold the tax credits as part of the BETC pass-through program. That's a mechanism many companies use to raise cash up front or if they don't pay enough Oregon taxes to use the credits themselves. Individuals or corporate taxpayers buy the credits from the project owner at a discount to reduce their own tax bills.
The transactions netted Mesilla $3.9 million, almost $5,200 per truck.