Net Power Inc. (NPWR) has disclosed a new risk, in the Taxation & Government Incentives category.
Net Power Inc. faces a substantial financial risk due to its inability to utilize future federal income tax credits effectively. The company has historically not generated revenue, and its deferred tax assets include federal income tax net operating losses as of December 31, 2024. If Net Power Inc. cannot monetize these credits under Section 45Q or any successor provision, either through transfer or direct payment, it must offset them against taxable income, which is uncertain. This uncertainty presents a risk to the company’s financial strategy, as there is no assurance of successfully transferring or generating taxable income to utilize these credits.
The average NPWR stock price target is $6.00, implying 86.34% upside potential.
To learn more about Net Power Inc.’s risk factors, click here.