RENEWABLE ENERGY FINANCE

THE VITAL ROLE OF TAX EQUITY INVESTMENTS

Traditional tax equity is a strategic financial mechanism, created by Congress, enabling companies to invest in renewable energy projects while benefiting from substantial tax incentives. In this arrangement, a corporation partners with a renewable energy project developer to provide necessary capital. In return, the corporation receives income tax credits and other sustainability benefits associated with the clean energy investment. 

When corporate taxpayers invest in renewable tax equity projects, like utility scale solar and storage, they are providing crucial capital necessary to provide additive power to the nation’s grid, as well as manufacturing and industrial job growth and decarbonization.

By supporting the growth of sustainable energy solutions, the corporate taxpayer is able to make an environmental impact, such as reducing Scope 2 emissions, and at the same time reduce their overall tax liability, making it a win-win strategy for the environment and the company's bottom line.