GREEN TAX EQUITY
While fossil fuels continue to play an important role in power generation today, the sector is in a state of transition and many of our clients are releasing net-zero targets and interim emission reduction goals with a strategy to transition their businesses away from high-emitting fuel sources to low-emitting or renewable sources of electricity.
A QUANTUM LEAP IN AMERICA’S FEDERAL CLIMATE POLICY
The Inflation Reduction Act of 2022 (IRA) is fundamentally shifting U.S. priorities, ushering in a clean energy economy at an unprecedented pace. The IRA overhauled clean energy tax credits to establish a robust, enduring framework that expedites the American transition to clean energy. Congress has incentivized renewable energy tax credits providing incremental targeted tax credits for certain activities.
Renewable energy tax equity investments can be part of an impactful climate strategy for corporate Issuers focused on additive green power, decarbonization and financial governance.
Some benefits to companies with tax liabilities include:
Material After Tax Returns:
Renewable energy tax equity offers an unprecedented opportunity for corporations to optimize their tax strategy and achieve outstanding IRRs.
Additive Green Power:
The tax equity investor provides capital to ensure a utility-scale renewable project gets completed. The investor can help mitigate climate change for the planet and potentially claim Scope 2 emissions reduction.
Demonstrating a commitment to sustainability not only aligns with the values of modern corporations but also fosters stronger connections with key stakeholders, including customers, investors, and employees.