Project Finance NewsWire

June 2023


IRS Transferability Guidance

The tax credit sales market should ramp up quickly. Buyers will have to repay the government if tax credits are recaptured or disallowed on audit.

Tax credit sales

Prices have been mainly in the 90¢ to 93¢ range, but are creeping higher. Buyers can carry back tax credits and recover taxes paid up to three years in the past.

Wage and apprentice negotiations

Developers are having to negotiate more wage and apprentice provisions in construction contracts now that the January 28 deadline to avoid them has passed.

LMI bonus credit guidance

Bonus tax credits of 10% or 20% of project cost can be claimed on some community and rooftop solar projects. The complexity is vastly out of proportion to the small size of the projects.

Comparing carbon offset credits

Demand for voluntary carbon credits is outpacing the supply. The supply is hampered by concerns about quality of the carbon credits.

Environmental update

The US Supreme Court stripped protection under the Clean Water Act for more than 50% of the nation's previously-regulated wetlands.


Purchase Price Allocations

Buyers of projects that qualify for future government payments must allocate part of the purchase price to such payments, the US claims court suggested in mid-June.

Domestic content calculations

Project developers are having a hard time getting the data they need from manufacturers to do the calculations required to claim a domestic content bonus tax credit.

Manufacturer tax credits: Section 48C

Manufacturers who plan to apply for an initial round of $4 billion in tax credits for building production lines to make products for the green economy have until noon eastern time on July 31 to submit.

Contract manufacturing

Contract manufacturing is becoming more important as some manufacturers angling for section 45X credits for making components for wind, solar and storage projects farm out the physical work to other companies.

PTC inflation adjustment

Production tax credits for producing renewable electricity will be higher this year than in 2022, but the amount varies depending on when the project went into service.