SNP MPs will lobby the Chancellor for a slashing of corporation tax for renewable energy firms as part of the Autumn Statement.
The party is expected to back a cut in corporation tax to 15% for renewables firms, an SNP source at Westminster said.
That compares with the current rate of 25% for companies with a profit of £250,000 a year or more.
It follows calls by businessman Sir Tom Hunter earlier this year to slash rates on key “global growth sectors” to boost the Scottish economy.
Mr Hunter suggested said the 15% corporate tax zone should be applied to three key secors: renewables, low-carbon manufacturing and services; life sciences and medical technologies; and software, big data and AI.
The analysis is based on a paper produced by Oxford Economics for Mr Hunter’s philanthropic foundation and drew comparisons with Ireland, which succeeded in garnering foreign direct investment through similar means following the economic crash of 2008.
Jeremy Hunt is expected to announce a rise in the minimum wage as well as cuts to National Insurance contributions and significant cuts to business taxes in his Autumn Statement on Wednesday, though full details have yet to be revealed.
A reform of planning rules to speed up transmission infrastructure building and plans to offer payments to homes near new lines are also reportedly in the works.
Welcoming the report from Mr Hunter earlier this year Scotland’s wellbeing economy secretary Neil Gray said: “Scotland’s share of the UK’s foreign direct investment projects reached a record high last year, according to the latest EY survey – maintaining its position as the top-performing area of the UK outside of London for the eighth year in a row.
“While corporation tax is currently controlled by Westminster, we think there are strong arguments in favour of these targeted proposals for Scotland, to boost economic activity in key growth sectors, including renewables and low carbon manufacturing.
“The Scottish Government has already delivered the fairest and most progressive income-tax system in the UK, while raising extra revenue to invest in public services and Scotland’s economy.
“Our medium-term financial strategy sets out a clear commitment to have an increasing focus on the policies and actions with the greatest potential to grow and strengthen Scotland’s economy.”
Meanwhile clean energy trade body ScottishRenewables told the Chancellor that windfall taxes on the electricity sector also need a “rethink”, and that corresponding investment incentives remain “severely undeveloped” compared to oil and gas.
In an October letter it urged Treasury to consider new incentives and exempt new projects from the electricity generators levy (EGL) and introducing a sunset clause on the windfall tax.
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