OUR COMMITMENT TO SUSTAINABILITY & FINANCIAL EXCELLENCE

Our tailored solutions and deep industry expertise make Churchill Stateside one of the foremost syndicators of tax credits to the Fortune 500. CSS works closely with leading developers, institutional investors, and corporations to craft bespoke green energy infrastructure solutions.

Tax equity investments are the lifeblood of financing renewable energy projects, propelling sustainability forward at an unparalleled pace across the United States. Without tax equity, the growth of sustainable initiatives would be significantly hampered.

Our clients are adding productive renewable energy to the U.S. energy grid, supporting sustainability initiatives, and aligning with the low carbon economy. At the same time, tax equity is a risk-mitigated investment and delivers an attractive after-tax return.

Tax equity and transfer credit investments are indispensable financial instruments driving the energy transition in the United States.

TAX EQUITY

Renewable energy tax equity is a form of project financing. Tax equity investors commit a portion of the cash needed to develop a renewable energy project, and in return receive financial benefits, tax benefits and environmental benefits.

Established by Congress in 2006 and receiving sweeping bipartisan support in the Inflation Reduction Act of 2022, renewable energy tax equity offers corporate taxpayers:

Rapid return of capital as the Federal Investment Tax Credit (ITC) provides a dollar-for-dollar reduction in income taxes that a corporation would otherwise pay the federal government.

Accelerated depreciation for the majority of the cost of the solar assets, allowing investors to “keep” funds that would otherwise be paid to the IRS.

Material after-tax returns from tax savings and cash yield

Steady cash flows anchored in long-term, fixed-rate agreements with credit-worthy offtakers.

These benefits are quickly accessible post-investment and are largely unaffected by the actual energy output of the solar project.

The CSS team has closed over 50 tax credit funds and has placed more than $5.5 billion in tax equity projects. As a leading syndicator of renewable energy tax equity, we focus on driving optimal economic results while mitigating risks and minimizing the resources required by our clients with respect to diligence, document preparation, fund closing, accounting, and asset management.

TRANSFER CREDITS

“Transferability” or Transfer credits allow investors to directly purchase tax credits via a simple one-time purchase agreement. Introduced with the IRS’s June 2023 guidance, transferability of tax credits creates an appealing entryway into the renewables market for investors who see the obvious benefits of solar tax equity investments but may have other concerns that may not allow them to avail themselves to traditional tax equity.

Transfer Credit transactions are much simpler because investors are simply buying the ITCs from eligible solar facilities via a credit purchase agreement. Unlike traditional solar tax equity investment – investors do not need to own or lease the underlying solar facility to be allocated the ITCs.

The 2022 Inflation Reduction Act marked a paradigm shift to simplify investment in renewable energy tax credits. While previous tax equity structures included several dozen documents, a tax equity transfer can now be accomplished with little more than a purchase agreement and a tax opinion.

CSG is excited for the flexibility and efficiency offered by this complimentary new product and will continue to protect our investors in the same manner as traditional tax equity offerings. This protection includes our commitment to sourcing only the highest quality project opportunities from established sponsors with proven track records. CSG undertakes extensive due diligence on each project on the investor’s behalf, which culminates with the delivery of a tax opinion from a nationally recognized law firm.