This paper utilizes solar radiation data of 25 locations in Oman to investigate economic viability of PV projects considering different market conditions. The study investigates the effects of corporate income tax rate, capital cost allowance, and greenhouse gas reduction credit on the feasibility of a typical 5 MW PV power plant at each of the 25 locations. The results show that despite the generous taxation rate in Oman, taxes represent a big burden on renewable energy projects investors; therefore could hinder investments in this sector when capital cost allowances are not considered in tax calculations.