Although the simplified model described in this section does not consider income tax incentives, it also neglects income taxes on electricity revenue. In reality, electricity revenue will be taxed at the corporate tax rate, increasing the break-even price of electricity. Tax incentives are in the form of avoided income taxes, and can at maximum be equal to the income taxes which would have been paid on revenue. Thus, by neglecting both income taxes and income tax incentives, this method essentially assumes that all income taxes are recovered through incentives.