Project Finance NewsWire

April 2013

IN THIS ISSUE

Drive to Reduce the Cost of Capital

Renewable energy companies and the Obama administration are looking for ways to reduce the cost of capital for renewable energy projects in the United States...

Synthetic Power Contracts

Renewable energy projects traditionally attract financing only after securing a long-term contract to sell the electricity to a creditworthy offtaker at a relatively fixed price...

China Sets New Energy Goals

Reaction to the new five-year energy plan that China released in late January has been mixed. Private and foreign investors are happy with the plan because it opens new doors for investment ...

The US Distributed Solar Market

A group of solar rooftop industry executives had a wide-ranging discussion at the PV America convention in Philadelphia in February about the basic business models in use in the US market, custome...

Environmental update

Two state-level climate change cap-and-trade programs in the United States appear to be finding solid footing...


IN OTHER NEWS

India

India is asserting the right to tax multinational corporations that make capital contributions in exchange for shares in Indian subsidiaries to the extent the shares are worth more when issued...

Partnerships

Partnerships may be subject to new tax rules in the future.

No Costs Were “Incurred”

No costs were “incurred” under a construction contract for a large power plant until the plant reached substantial completion, the Internal Revenue Service ruled...

Batteries

Batteries installed as part of rooftop solar systems qualify for a 30% investment tax credit, but the tax credit is subject to a “75% cliff,” the IRS said...

Indian Tribes

Indian tribes can transfer federal tax benefits on projects the tribes own...

Pension Funds

Pension funds outside the United States may get relief from US taxes. The United States does not usually tax foreigners on gains from passive investments in US shares, bonds or other assets...

Production tax credits

Production tax credits for US power plants that generate electricity from wind, geothermal fluid or steam or “closed-loop” biomass will be 2.3¢ a kilowatt hour during 2013.

Property Taxes

Property taxes paid to a US state or local government are usually deductible for federal income tax purposes, but not in every case...

New Swap Rules

New swap rules that took effect on April 1 threaten to make some guarantees and security packages in loan transactions unenforceable, according to Andrew Coronios and Monika Szymanski in the Chadb...

Options

Options to purchase partnership interests may have tax consequences, the IRS said. The agency explained the tax consequences of “noncompensatory” options in final regulations in February...

The US Foreign Corrupt Practices Act

The US Foreign Corrupt Practices Act applies to three Hungarian executives of Magyar Telekom PLC, a federal district court judge in New York ruled in February...

Initial Property Tax Assessments

Initial property tax assessments can be capped for wind farms at 33% of installed costs and for solar projects at 12.5% of installed costs, the Tennessee state attorney general said...

Minor memos

The IRS is asserting more frequently on audit that US companies should receive fees from foreign affiliates for whom they guarantee repayment of debts or performance of contracts...