Articles | Norton Rose Fulbright

Latest project finance insights

The Mexican energy sector is embroiled in a new controversy. A resolution issued in May by the CRE lowers efficiency requirements for cogeneration facilities ...

EP208: Current Trends in Renewables

CEO of Marathon Capital Ted Brandt talks with Todd Alexander about how the Inflation Reduction Act has affected the landscape of deals in the renewables sector and more

Ep207: The Climate Mobilization Act

Jeff Hendler, CEO of Logical Buildings, and our host Todd Alexander discuss the Climate Mobilization Act.

ITC and PTC Cheat Sheet

A colleague, who is not a tax lawyer, asked for a cheat sheet with key facts about the production tax credit (PTC) and the investment tax credit (ITC) after the Inflation Reduction Act of 2022 (IRA).

Texas Debates Tilt Toward Gas-Fired Power Plants

Texas legislators are pushing seven bills aimed at bolstering traditional dispatchable power in a bid to fix a reliability problem with the Texas power grid.

Domestic Content Bonus Credit

The Internal Revenue Service explained today how to determine whether wind, solar, storage and other renewable energy projects qualify for a bonus tax credit for using enough domestic content. inflation

Table 2 – Categorization of Applicable Project Components

The Internal Revenue Service explained today how to determine whether wind, solar, storage and other renewable energy projects qualify for a bonus tax credit for using enough domestic content.

Government Lawyers Discuss Energy Tax Credits at ABA Meeting

The American Bar Association 2023 May Tax Meeting was held in Washington, DC, over a three-day period.

Ep206: How the IRA has affected the MCOE

Michael Tatarsky, managing director, and Colin Smith, senior research analyst, with CohnReznick Capital join Todd Alexander to discuss the market cost of energy.

Tax Credit Insurance Mitigates Risk for Tax Credit Transfers but Due Diligence is Still Necessary

The Inflation Reduction Act of 2022 (IRA) changed almost a century of federal tax law and allowed energy credits to now be sold.

Ep205: “Transferability” - Tax Credit Sales

The Inflation Reduction Act last August let companies sell nine types of federal tax credits to other companies for cash

Energy Community Qualification and IRS Rules for Unemployment Data

The Bureau of Labor Statistics (BLS) published the official 2022 unemployment data, which provides the final puzzle piece for some owners of clean energy projects to be able to determine if their project

Ep204: Global Mining Supply Chain

Martin McCann, partner in London, joins Todd Alexander to discuss the global mining supply chain.

Are you using the right version of the IRS’s energy community notice

Notice 2023-29 was generally welcomed news to the renewable energy industry as it provided significant clarify about how to determine if a project is sited in an “energy community.”

Energy community bonus credit guidance

The IRS filled in missing details that were making it hard for renewable energy developers to feel confident about which projects qualify for a new 10% bonus tax credit for projects in "energy communities."

Overview of Energy Tax Credits After the IRA

The New York Energy Summit, presented by Infocast, was held in Albany from April 4 to 6 where David Burton served as Summit Chair.

The Solar + Wind Finance and Investment Summit Soundbites: the Corporate Offtake and M&A Markets

The second annual Solar + Wind Finance and Investment Summit was held in Phoenix from March 12 to 15.

FASB’s proportional amortization method for tax equity deals ain’t all it’s cracked up to be

On March 29, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2023-02 (ASU 2023-02).

Texas legislature considers tougher permitting for renewables

Companion bills pending in Texas House and Senate committees would impose new permitting requirements for wind and solar projects, but not other types of power plants.

Ep203: Transferability of Tax Credits

Hilary Lefko, partner in Washington, joins Todd Alexander to discuss the transferability of tax credits.

The Solar + Wind Finance and Investment Summit Soundbites: the Debt and Sponsor Equity Markets

The second annual Solar + Wind Finance and Investment Summit was held in Phoenix from March 12 to 15.

The Solar + Wind Finance and Investment Summit Soundbites: the Tax Equity Market and Transferability

The second annual Solar + Wind Finance and Investment Summit was held in Phoenix from March 12 to 15.

Ep202: Bridge Banks: Silicon Valley Bank and Signature Bank Market Watch

Tim Byrne, Eric Daucher and Tom Delaney join Todd Alexander to discuss the formation of the bridge banks for Silicon Valley Bank and Signature Bank and what to expect from them and government regulation.

Ep201: Silicon Valley Bank Outlook

Tim Byrne, Eric Daucher and Tom Delaney join Todd Alexander to discuss what has unfolded for Silicon Valley Bank over the weekend and what it means

Environmental Update

The White House Council on Environmental Quality, or CEQ, released interim guidance for how federal agencies should assess climate change effects of federal agency actions in their environmental assessments ...

Cryptocurrency Contributions

Charitable contributions made in cryptocurrency cannot be deducted without an appraisal to establish how much the cryptocurrency is worth.

Applying for Section 48C Tax Credits

Manufacturing angling for some of the $10 billion in tax credits that the Inflation Reduction Act authorizes to encourage construction of new US factories to make products for the green economy ...

Section 45V Tax Credits: Open Issues

A showdown over standards that must be met to count hydrogen as clean is pitting hydrogen producers against environmental groups and some renewable energy generators.

LMI Bonus Credits

LMI bonus credits will be hard to claim on 2023 projects the way the Internal Revenue Service plans to implement the program.

Make-Whole Provisions and Bankruptcy

Make-whole provisions may be unenforceable where a bankrupt company is trying to restructure its debts and reemerge from bankruptcy.

New Hurdle for Some European Acquisitions and Tenders

New European Union notification and approval requirements will hit public tenders valued over €250 million and acquisitions of EU businesses with more than €500 million in EU revenue

EPA Greenhouse Gas Reduction Fund

The Inflation Reduction Act establishes a $27 billion Greenhouse Gas Reduction Fund at the US Environmental Protection Agency.

Washington Policy Outlook

Tom West, deputy assistant secretary of the Treasury for tax policy, told the 18th annual renewable energy law conference at the University of Texas in Austin in late January that the Treasury hopes ...

Cost of Capital: 2023 Outlook

Yields on 10-year and 30-year Treasuries are above 4% for the first time since 2007, up from only 1.9% a year ago. The futures markets shows investors expect the federal funds rate to peak at 5.45% ...

Rising Solar Insurance Premiums and Shrinking Coverage

Property insurance premiums are up 15% to 45% across the solar industry and are becoming a major concern for developers, investors and construction contractors.

Transferability: Selling Tax Credits

The US Treasury is expected to issue guidance about direct sales of federal tax credits by the second quarter this year ...

Stimulus With Bottlenecks

The Inflation Reduction Act is stimulating demand at the same time that developers are running into multiple bottlenecks. Some of the bottlenecks are consequences of the war in Ukraine.

What did we learn from the Advanced Energy Manufacturing Tax Credit Guidance?

Notice 2023-18 provides guidance on the advanced energy manufacturing tax credit. Except for explaining the application process, it did little more than parrot the statutory language in section 48C and promised

Ep200: Cost of Capital: 2023 Outlook

Four veteran tax equity investors and lenders talk about what to expect in the year ahead.

IRA Tax Credit Opportunities for Clean Energy Technology Companies

Below are bullet points outlining tax credit opportunities for clean energy technology companies.

Ep199: The DoC’s Preliminary Determination of Circumvention Issues

Stefan Reisinger, partner in Washington, joins us to discuss the Department of Commerce’s preliminary determination of circumvention issues.

Anti-Circumvention Duties and Solar Panels

The Commerce Department said this morning that it made a preliminary decision to impose anti-circumvention duties on solar panels produced in Vietnam, Malaysia, Thailand and Cambodia using Chinese parts.

IRS Issues Wage and Apprentice Requirements

Ep198: Book talk: California Burning

The Wall Street Journal's Katherine Blunt talks to Keith Martin about her book, California Burning, which addresses the challenges facing utilities with aging power lines in drought-stricken parts of the US.

Ep197: Post-Election Analysis

Five veteran Washington observers talk with Keith Martin in our Washington office about what the midterm election results mean for clean energy, storage, carbon capture, hydrogen and the project finance market.

IRS Confirms Higher PTC Rate due to the IRA

IRS Announcement 2022-23 updates the production tax credit (PTC) rate to 2.75 cents a kWh for wind, solar, geothermal and closed-loop biomass power plants placed in service after 2021.

Battery storage tax credit opportunities and development challenges

Below are slides the authors prepared about tax credit opportunities and development challenges for battery storage.

IRS acknowledges PTC increase

The IRS said this afternoon that production tax credits on new wind, solar, geothermal and closed-loop biomass power plants put in service in 2022 are 2.75¢ cents a KWh.

California solar property tax exemption

California extended a property tax exemption for solar projects placed in service by the end of 2026.

FEMA power plant proposal

The fate of a FEMA proposal to require power plants and other projects to be able to withstand extreme weather events should be decided around November 1.

Shared-appreciation loans

A shared-appreciation loan was a pure loan and did not make the lender a partner with the borrower, the US Tax Court said.

Tax equity partnerships and QIOs

Tax equity partnerships take note.

Solar anti-circumvention moratorium

Solar developers planning to import solar panels by mid-2024 to avoid any US anti-circumvention duties the US decides to impose on panels from Vietnam, Malaysia, Thailand or Cambodia must actually use the panel

Wage and Apprentice Guidance

Wage and apprentice guidance is expected by year end.

Environmental Update Oct 2022

Solar generating equipment withstood much of the wrath of the two hurricanes that struck Puerto Rico and Florida in September, providing advocates for the industry with reason to argue ...

US Offshore Wind Lease Issues

Offshore wind developers bidding in federal auctions of sites off the US coast commit to a time-consuming and expensive process.

Carbon Capture Economics

The Inflation Reduction Act increased a tax credit for capturing carbon oxide emissions and extended the deadline to qualify. The tax credit, even before the latest increase, was already contributing to ...

Recycling and Renewable Energy

End-of-life management of renewable energy is both a looming challenge and a potential opportunity.

Bonus Tax Credits and the Inflation Reduction Act

Three potential bonus tax credits in the Inflation Reduction Act could take investment tax credits on some projects as high as 70%.

Hydrogen Tax Credits

Companies angling to take advantage of new tax credits in the Inflation Reduction Act for making clean hydrogen are asking lots of questions.

Observations of a Former ISO Board Member

Naturally, one accumulates many thoughts over nine years. My comments today are my own personal thoughts, and I am not speaking as a representative of the ISO, its management or my fellow directors.

Treasury opens a 30-day window for IRA comments

The Treasury asked for comments on most of the major tax provisions in the Inflation Reduction Act this afternoon. Comments are due November 4.

The IRA’s Expanded Tax Credits for Homeowners and Energy Efficiency Investors

The Inflation Reduction Act (the IRA) added and expanded tax credits for various types of energy efficiency products as well as for individuals installing solar on their homes.

Anti-Circumvention Duty Moratorium

Tax Credits Eligible for Direct Pay or Transferability Under the Inflation Reduction Act

Q&A on the Inflation Reduction Act

During our webcast on the tax provisions of the Inflation Reduction Act of 2022 (H.R. 5376) (the “IRA”), we received over 800 questions.

Searching for opportunities in the Inflation Reduction Act

Companies are scrambling to assess the effects of the Inflation Reduction Act on their projects. The tax equity market will look different. Tax credits after this year can be sold for cash.

Environmental update: August 2022

The Senate majority leader, Chuck Schumer (D-NY), had to agree to a broad outline for a separate permitting reform bill to win support from Senator Joe Manchin (D–WV) for the Inflation Reduction Act.

FERC and PJM tackle bloated interconnection queues

The Federal Energy Regulation Commission proposed new rules in June to revamp the way interconnection requests are processed, and PJM, the electricity grid in the mid-Atlantic states and parts of the Midwest...

Bitcoin mining and electricity

Bitcoin mining consumes a large amount of electricity. Houlihan Lokey calculated when bitcoins are trading for $50,000 a coin, the electricity is effectively converted into bitcoins for $400 a megawatt hour.

Current financing challenges

How are tax equity investors and lenders addressing the unusually large number of risks this year? Tangled supply chains and labor shortages are causing delays. Inflation is making projects more expensive to...

Renegotiating PPAs

Construction delays and cost increases are forcing renegotiation of power purchase agreements before renewable energy projects can be financed. Wholesale electricity prices jumped 2.5% for wind electricity...

Battery purchase contracts: Key pitfalls

Anyone developing a battery energy storage project should be prepared to address two main issues.

The Inflation Reduction Act and DOE loan programs

The Inflation Reduction Act upsizes the existing US Department of Energy loan programs. It also establishes new programs for transmission projects and for revamping existing energy facilities to enable...

Embracing hydrogen

Two competing narratives about hydrogen played out the last two years in the press. One was that hydrogen is being pitched by the fossil fuel community as a way for natural gas to retain longer-term relevance.

New tax credits for semiconductors

A new semiconductor tax credit intended to spur construction of new factories may not lead to much tax equity investment.

Right-side, left-side issues in tax equity deals

Right-side, left-side issues are getting more attention in tax equity transactions.

Solar tariff moratorium and Customs detentions

Customs detentions and import tariffs remain obstacles for US solar developers.

Tax equity partnerships that lose money

A tax equity partnership does not have to expect a profit apart from tax credits, a US appeals court said in early August.

Disappointing property tax outcomes

Two property tax cases had frustrating outcomes.

The evolving energy storage market

The energy storage market is still in its infancy, but it is evolving rapidly. Portfolios of standalone utility-scale batteries are now being financed of a merchant basis. The market is moving away from...

Ep196: Inflation Reduction Act

Keith Martin, David Burton and Hilary Lefko have a lively discussion about the Inflation Reduction Act’s effect on deals. Some parts of the Inflation Reduction Act that passed the Senate are retroactive to the

Inflation Reduction Act of 2022 – New Tax Credits for Manufacturers of Clean Energy Equipment

The Inflation Reduction Act of 2022 (the Act) has been celebrated for its proposed extension and expansion of credits for renewable energy project developers.

Transferability ain’t all it’s cracked up to be

On July 27, 2022, Senators Manchin and Schumer released the text of the proposed Inflation Reduction Act of 2022 (IRA), which would extend and expand the tax credits associated with clean energy.

Ep195: What's New in the Market

Keith Martin gives a lively update on what is new in the market. The tax equity market is wrestling with a series of issues tied to inflation and construction delays. Developers forced for the same reasons to r

Schumer-Manchin Deal Bolts Forward

Ep194: New PJM Regulations and FERC Rules

Bob Shapiro, partner in Norton Rose Fulbright’s Washington office, joins us to discuss the new regulations in PJM and new FERC rules aimed at easing crowded interconnection queues. We discuss how PJM is address

Effects Of West Virginia v EPA On Power Sector

The US Supreme Court today rejected six to three certain steps the US Environmental Protection Agency tried in the past to regulate greenhouse gas emissions.

Capital Account Implications for Renewable Energy Tax Credits Webinar: Q&A

Below our questions asked by the audience during our webinar of June 22 Capital Account Implications for Renewable Energy Tax Credits with our answers and explanations.

2022 PTC inflation adjustment

Production tax credits for producing renewable electricity will be slightly lower this year than thought earlier after the Internal Revenue Service corrected an error.

Climate change disclosures

Climate change disclosures that the US Securities and Exchange Commission is proposing to require of public companies could have two indirect effects on power companies.

Tax equity and construction delays

The tax equity market is wrestling with a series of issues tied to inflation and construction delays.

Anti-circumvention duty moratorium

Tariff moratorium regulations are expected soon.

Customs gets tougher on forced labor

Solar companies are anxious about whether tougher enforcement of a US prohibition against importing products that benefited from Chinese forced labor will mean more blocked solar panels and batteries.

Environmental update: June 2022

New York lawmakers passed a bill designed to slow the spread of cryptocurrency mining operations that burn fossil fuels for power in early June.

Ex-Im Bank financing for US manufacturing

The Export-Import Bank of the United States is moving forward with plans to finance construction of new US factories and expansion of existing factories that, in each case, will produce some goods for export.

Taking stock of community solar

A panel of five community solar experts talked in late February in Boston about new trends in the community solar market, including evolving contract terms, consolidated utility billing, customer attrition ...

Challenges facing individuals as tax equity investors

Ever wonder why as an individual, you probably cannot claim the investment tax credit or production tax credits?

Private activity bonds for carbon capture

A massive bipartisan infrastructure act that became law last November authorizes tax-exempt “private activity bonds” to be used to finance carbon capture projects.

Carbon capture terms

Interest in carbon capture projects has soared over the past year. To document commercial terms, some parties are re-purposing concepts from gas and refined coal deals. Others are cutting brand new ...

You are using an outdated browser.

Latest project finance insights