About the Class (Co-Hosted with Nixon Peabody LLP)
In the United States, renewable energy projects are provided a number of subsidies and incentives through the tax system. From the federal investment and production tax credits to local property tax relief mechanisms, it is impossible to develop and finance renewable energy projects in the United States without considering tax. Tapping into and maximizing these powerful subsidies and incentives requires an understanding of how renewable energy projects interact with the federal, state and local tax systems. There are many “traps for the unwary” that can be avoided by learning the basics of these interactions.
The purpose of this course is to introduce participants to the various federal income tax subsidies and incentives that are available for renewable energy projects in the United States. In addition to introducing participants to the myriad of tax technical rules and issues that must be observed and monitored to maximize the value of these tax benefits with real world examples, the course will provide participants with a policy framework and background to put these rules and issues into context. By understanding the policy framework and background, participants will better grasp and appreciate the tax rules so as to maximize their benefit and avoid their detriment.
Key Learnings & Takeaways:
Participants will be provided with:
- An overview of the various U.S. federal tax incentives available to renewable energy projects, including an overview of the policy framework and history that underlies the structure of these incentives today.
- An overview of the partnership flip, sale-leaseback and inverted lease structures, including an overview of the primary legal documents for each and an overview of the tax rules applicable to each
- An in-depth walk-through of an actual partnership-flip deal structure, including walk-through of hypothetical examples of what happens when not everything goes according to expectations and the tax issues that can arise
- Discussions of some of the latest developments in the tax equity market, including the implications of deadline relief granted due to the impacts of the pandemic, impacts of recent court decisions on tax equity risk, the future of tax equity, and syndication