Purchasing Renewable Energy Credits Amid the Inflation Reduction Act: Deal Terms and Key Considerations
Challenges for Counsel and Investors; Bonus Credits, Monetization, PTC, ITC, Buyer Protections, Passive Activity Rules, and More
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will discuss the new and modified renewable energy credits, including an overview of how the credits are structured and the bonus and add-on requirements that are essential to maximizing the value of any credit (i.e., wage and apprenticeship requirements, domestic content requirements, "energy community" bonuses, etc.). In addition, we will provide attendees with an understanding of the rules that impact the transfer of eligible credits, how the transfers will impact a project's financing structure, and a discussion of strategies to mitigate risks associated with the one-time transfer of eligible credits.
Outline
- Overview of impact of the IRA on renewables
- Available credits and requirements
- Tax credit transfer regime
- Financing models amid the IRA
Benefits
The panel will discuss these and other key issues:
- Key provisions for renewable tax credits under the IRA
- Transfers of tax credits to third parties
- Available financing models in light of the IRA
- Key considerations and next steps for renewable energy developers, producers, and investors that are considering a purchase or sale of credits
Faculty
David K. Burton
Partner
Norton Rose Fulbright US
Mr. Burton advises clients on a wide range of U.S. tax matters, with a particular emphasis on project finance and... | Read More
Mr. Burton advises clients on a wide range of U.S. tax matters, with a particular emphasis on project finance and energy transactions. In addition, he also advises clients on tax matters regarding the formation and structuring of domestic and offshore investment funds. He has extensive experience structuring tax-driven vehicles, such as sale-leasebacks, flip partnerships, inverted leases and other structures, for the acquisition and financing of renewable energy assets.
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Nicholas C. Mowbray
Counsel
BakerHostetler
Mr. Mowbray focuses his practice on U.S. federal income tax matters, with an emphasis on international tax and the... | Read More
Mr. Mowbray focuses his practice on U.S. federal income tax matters, with an emphasis on international tax and the taxation of financial products. He regularly advises clients on ways to enhance the tax efficiency of commercial transactions and operating structures, including outbound investments by U.S. multinationals, inbound investments by non-U.S. multinationals, the structuring of cross-border financings, internal restructurings and reorganizations, and acquisitions. Mr. Mowbray also regularly advises clients on controversy matters involving the recognition of income, transfer pricing and the international tax provisions of the Tax Cuts and Jobs Act of 2017. In addition, he has significant experience with advising clients on digital asset transactions, offerings and entity and investment structures.
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Marc S. Reisler
Principal
Sive Paget & Riesel
Mr. Reisler is a Principal at Sive, Paget & Riesel P.C. He regularly works on solar, storage, wind, geothermal and... | Read More
Mr. Reisler is a Principal at Sive, Paget & Riesel P.C. He regularly works on solar, storage, wind, geothermal and renewable natural gas project financings, representing lenders and borrowers. Mr. Reisler also works on securitizations of residential solar and rural small wind assets. He frequently represents lenders providing “back leverage” credit facilities to tax-equity financed projects. Mr. Reisler's experience includes representing lenders in recapitalizations of private equity sponsored renewable projects. He has also represented investors in preferred equity financings of LEED certified real estate projects. Mr. Reisler has considerable experience helping lenders navigate the complexity of renewable project finance borrowers in Chapter 11 bankruptcy, advising in negotiations with the Chapter 11 trustee, tax-equity investors, cash-equity investors, O&M service providers and other creditors.
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