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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.
Tax Credits Eligible for Direct Pay or Transferability Under 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.
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.
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.
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 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.
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...
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...
Anyone developing a battery energy storage project should be prepared to address two main issues.
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...
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...
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.
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 are getting more attention in tax equity transactions.
Customs detentions and import tariffs remain obstacles for US solar developers.
A tax equity partnership does not have to expect a profit apart from tax credits, a US appeals court said in early August.
Two property tax cases had frustrating outcomes.
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
The Inflation Reduction Act of 2022 (the Act) has been celebrated for its proposed extension and expansion of credits for renewable energy project developers.
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.
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
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
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.
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.
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 that the US Securities and Exchange Commission is proposing to require of public companies could have two indirect effects on power companies.
The tax equity market is wrestling with a series of issues tied to inflation and construction delays.
Tariff moratorium regulations are expected soon.
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.
New York lawmakers passed a bill designed to slow the spread of cryptocurrency mining operations that burn fossil fuels for power in early June.
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.
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 ...
Ever wonder why as an individual, you probably cannot claim the investment tax credit or production tax credits?
A massive bipartisan infrastructure act that became law last November authorizes tax-exempt “private activity bonds” to be used to finance carbon capture projects.
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 ...
The hedge market is offering the same menu of options a year and a half after a sudden cold snap in Texas left some power projects facing huge losses.
Sales of solar projects and solar development platforms are still closing, despite some risk that a court could still block implementation of a 24-month moratorium on anti-circumvention duties on solar ...
A panel of veteran financiers at the annual ACORE finance forum in New York in early June . . .
Jigar Shah, Director of the Department of Energy's Loan Program Office, joins us to discuss the mission of the program and what it is working on right now. We talk about the types of deals that are relevant for
In this webinar, partners David Burton and Hilary Lefko discuss the current trends, as well as capital account and tax basis implications for renewable energy partnerships.
Stefan Reisinger, partner Norton Rose Fulbright’s Washington office, joins us for a closer look at the Biden action yesterday to shield solar panels imported from Vietnam, Malaysia, Thailand and Cambodia during
Lee Taylor, CEO of REsurety, joins us to discuss the recent evolution of the hedge market due to the impacts of winter storm Uri. We get into the spectrum of hedging options before the storm, how each of those
This is the second installment of soundbites from Infocast’s inaugural Solar + Wind Finance and Investment Summit.
The US Department of Commerce’s decision to investigate antidumping and duties on solar imports from Cambodia, Malaysia, Thailand and Vietnam has resulted in a slowdown in imports of panels to the US.
Jason Kaminsky, CEO of kWh Analytics, joins us to discuss the company’s $20M Series B fundraise and the emergence of climate insurance. We discuss what the fundraise means for the industry as a whole, why clima
The inaugural Solar + Wind Finance and Investment Summit was held in Scottsdale, AZ from March 6 to 9 and the conference was extremely well-attended.
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, joins us to discuss what the potential anti-circumvention tariffs on cells and modules from Malaysia, Thailand, Vietnam and Cam
David Burton and Viktoria Vozarova analyze the US Court of Appeals for the Federal Circuit’s recent decision in Ampersand Chowchilla Biomass LLC v. US.
The Biden administration is looking for other ways to press banks to prepare for potential threats to the nation’s financial system from climate change.
Leading project finance market participants were split as the NewsWire went to press about the effect the Russian invasion of Ukraine will have on renewable energy and the broader project finance market.
The talk at the annual Infocast Projects & Money conference in New Orleans in late January was about the rapidly evolving US renewable energy market.
Renewable energy developers are showing more interest in the voluntary carbon offset market as a potential source of additional revenue for their projects.
Developers of renewable energy projects in the United States sometimes struggle to calculate how much tax equity can be raised to help pay the project cost.
A record number of banks and grey market lenders are chasing projects at the start of 2022, keeping downward pressure on interest rates despite rising inflation.
Roughly 20% of representations and warranties insurance policies issued between 2016 and 2018 had claims made on them within three years after the policy inception.
US Customs is starting to release some blocked Chinese solar panels.
Cryptocurrency miners are becoming a potentially lucrative outlet for some power suppliers
A utility structure for raising tax equity solves a so-called section 707(b) issue with some utility tax equity partnerships.
Law firms are fielding constant questions about the outlook for the “Build Back Better” bill, whether certain provisions risk being left behind and what is likely to happen with Customs seizures of some...
Lenders and equity investors in emerging market projects can make more sophisticated country risk analyses, insuring selected risks in a manner that increases the internal rates of return on projects.
Replacing LIBOR with SOFR will not trigger US tax consequences, as long as the change doesn’t cross one of four tripwires.
US import tariffs on solar cells and panels could remain a battleground into the summer.
Keith Martin, partner at Norton Rose Fulbright in Washington, joins us to discuss investment tax credits (ITCs) for energy storage and provide an update on the current tax equity market. We get into how current
Bill Nussey, founder and CEO of the Freeing Energy Project, joins us to discuss the shift to cleaner, cheaper energy. We discuss his new book, Freeing Energy, why he thinks local energy can be cheaper than elec
David Burton provides the answers to the questions submitted by audience members during the webinar.
The year ahead looks like another strong year for financings, but with uncertainty around supply chains, inflation, potential tax law changes and import tariffs. The yield on the 10-year Treasury bond is up sig
The Court of Federal Claims in its summary judgment opinion in the Desert Sunlight case clarified the application of the purchase price allocation rules to determine the investment tax credit (ITC).
Katie McClain, partner at Energize Ventures, joins us to discuss the company’s investment approach. We get into what it looks for in clean energy and climate tech companies, how its approach differs from other
The United States moved one step closer in December to requiring US companies to file reports with the US Treasury disclosing their beneficial owners.
An Iowa homeowners’ association is a water utility and must collect a utility excise tax on water service, the state tax department said.
Some solar output forecasts are too optimistic.
“Public utility property” questions continue to take up IRS time.
California clarified that partnership flip transactions do not trigger property tax reassessments for solar projects.
Tax basis allocation issues are getting more attention in court.
LIBOR would be replaced automatically with SOFR in some loans and other contracts under a bill that passed the US House of Representatives in early December by a 415-to-9 vote.
Investors have options for how to weather sovereign debt defaults that are expected in as many as 15 to 20 countries in the wake of the pandemic. The fact that China has become the world’s largest creditor ...
Battery purchase contracts take one of two general approaches. Once an approach is chosen, there are four key issues to be sure to address in the contract.
The infrastructure bill requires projects receiving federal funding to use iron, steel, manufactured products and construction materials made in the United States.
The US renewable energy market is entering a period of potentially rapid growth, but with a great deal of short-term uncertainty. A quick survey of how supply-chain difficulties, tax law uncertainty ...
Outsized profits from cryptocurrency mining are an enormous current opportunity for electric power suppliers. However, the length of time this opportunity will remain available is uncertain.
Developers are already circling money for hydrogen projects after a boost in funding in the infrastructure bill that President Biden signed in November. Such projects would get a further boost if the “Build ...
The lead finance people at three large offshore wind projects planned off the US Atlantic coast discuss the recently concluded financing for Vineyard Wind, the financing plans for the other two projects ...
Three main tax equity structures and two significant variations are in use currently in the US solar market. The structures raise different amounts of tax equity, allocate risk differently and impose ...
Power projects using best management practices to avoid incidental “takes” of migratory birds are “not an enforcement priority.” The Bureau of Ocean Energy Management will try to lease enough area off ...
Renewable natural gas projects are tapping into low-carbon fuel standard credits in California, and have the potential to do so in other states.
The infrastructure bill authorizes the US Department of Energy to lend up to $10 billion to help with construction of new high-voltage interstate transmission lines. DOE can also act as a catalyst for new ...
Maria Klutey, president of Activate Renewables, joins us to discuss how the company’s business model maximizes the value of renewable real estate holdings. We get into the history and background of Activate, it
Matt Harper, chief commercial officer at Invinity Energy Systems, joins us to explain vanadium flow batteries. We discuss the future of energy storage, how vanadium flow batteries differ from lithium-ion, what
Sheldon Kimber, CEO and co-founder of Intersect Power, joins us to discuss what he is seeing in the industry and talk about the company’s latest financing. We discuss Intersect’s interest in green hydrogen, how
Maryann Johnson, senior managing director of property and energy claims at Beecher Carlson, Brian DiLuigi, senior vice president of alternative energy, and Alex Nephew, risk management and insurance advisor wit
If the Democrats manage to end their in-fighting and pass the Build Back Better Act (BBB), it appears likely to include an option to elect cash in the form of a tax...
Jackson Moore, product director at DNV for renewable energy software, joins us to discuss DNV's solar energy validation work and to address questions about how and why solar assets may underperform. We discuss
Sam Porter and Mike Sloan, partners at Synergetic, join us to discuss green energy infrastructure. We go over Synergetic’s mission to deliver zero-carbon energy, the current infrastructure issues that it has id
The proxy revenue swap (PRS) is a
burgeoning financial product that supports
renewable energy projects that sell electrical
energy into the wholesale electricity markets.
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