Ryan Levine: Okay. And why start that in 2025 as opposed to another year from a timing standpoint?
Steve Coughlin: Well, we look at this — so I’m not sure that you were pointing out, so we did grow at 4% this year. This is a policy that we take very seriously and thoughtfully. And so we weren’t prepared — we made that decision for this year, towards the end of last year. We weren’t prepared to make this decision until we had thoroughly analyzed it and recently made that decision as we locked down our final plan here. And we think, therefore, it makes sense once we’ve made the decision to go ahead and implement it as soon as we’re able, which will be 2025.
Ryan Levine: Thank you.
Steve Coughlin: Thank you.
Operator: Our final question today comes from Gregg Orrill with UBS. Your line is open. Please go ahead.
Gregg Orrill: Yes, thank you, congratulations. Just a detail-oriented question. The 2024 tax credit guidance of $1 billion. Is there anything in there that is timing related or you might describe as more onetime in nature? Or is that — would you grow that from that level as you add renewables projects?
Steve Coughlin: Yes. So it will grow. And it’s not timing so much as it’s just the success of the business. As Andres said, we doubled our construction last year. And keep in mind that not all of the credits are recognized in year one in tax equity structures. It’s roughly 1/3 get recognized in the second year. So that’s boosting the credit this year as well as all of the projects that will come online this year, the new projects on top of that. The other thing that’s driving it is the transfer of credit does get recognized earlier, essentially almost all in the first year. And so there’s a greater mix of credits transferred in this vintage this year as we — that grows as a component of how we monetize the credits. So that’s driving it higher.
But I don’t expect this to have dipped, I think it will continue to rise as we head into the years ahead, as the growth program continues. And then keep in mind that we are benefiting from the energy community adder and a significant portion, which increases the credit. And our wind projects are all qualifying for domestic content also going forward. So that all else being equal, is driving the credit value up. And what’s important for everyone to understand is the credit is cash and earnings. And the great thing about these — particularly the investment credits, which is the lion’s share of our mix of tax attributes is upfront. So you’re getting a return on your capital investment of a significant portion, at least 30%, in some cases, up to 50% right away, which is a fantastic cash profile as well as an earnings profile.
Gregg Orrill: Okay, thanks.
Operator: This concludes our Q&A. I’ll now hand back to Susan Harcourt, Vice President of Investor Relations, for final remarks.
Susan Harcourt: We thank everybody for joining us on today’s call. As always, the IR team will be available to answer any follow-up questions you may have. Thank you, and have a nice day.
Operator: Ladies and gentlemen, today’s call has now concluded. We’d like to thank you for your participation. You may now disconnect your lines.
