Sunny and Windy—Tax Credits and Renewable Project Finance
Author: James B. Mann.; Mark Howe.
Source: Volume 33, Number 03, Spring 2016 , pp.25-44(20)
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Abstract:
The recent unexpected extension of renewable energy tax credits by Congress is expected to spark greater numbers of project finance transactions for these assets. While there is some guidance from the Internal Revenue Service and the Treasury Department regarding these transactions, questions remain. This article details the changes made to taxes related to energy project investments and then analyzes how investors can best take advantage of the available tax benefits using various different financing structures.Keywords: renewable energy, solar energy, wind energy, tax credits, PATH Act, investment tax credit, production tax credit, depreciation, flip partnerships, sale leasebacks, inverted leases, Yield Cos
Affiliations:
1: Cadwalader, Wickersham & Taft LLP; 2: Cadwalader, Wickersham & Taft LLP.