Category Archives: Financing

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Nevada Legislature Approves Bills to Encourage Distributed Generation and Community Solar Projects

The Nevada legislature took several actions in the last days of its 2017 legislative session to reopen the state to the development of and investment in distributed generation and community solar projects.  While Nevada has the fourth most solar capacity installed of any state, most of the recent development has been of utility-scale projects after … Continue reading this entry

IRS Issus New Guidance on the Beginning of Construction Safe Harbor For Renewable Energy Projects

The IRS recently issued Notice 2017-4 (the “Notice”) which makes two important changes to its “beginning of construction” rules for taxpayers seeking to take advantage of the section 45 renewable electricity production tax credit (PTC) for wind and other renewable energy facilities including geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects. Under prior IRS … Continue reading this entry

IRS Revokes Favorable PLR Concerning Ability of Tribe to Pass ITCs to Lessee in Master-Tenant Structure

In recently released Private Letter Ruling 2016-40-010 (the new ruling), the IRS prospectively revoked PLR 2013-10-001 (the original ruling), concluding that a Native American tribe may not elect to pass investment tax credits (ITC) associated with renewable energy assets on reservation lands to a taxable entity under Section 50(d)(5) of the Tax Code.  [Click here … Continue reading this entry

IRS Issues New Notice Extending Beginning of Construction Safe Harbor

Yesterday, the IRS issued Notice 2016-31 (the “Notice”) which revises previous guidance on satisfying the “beginning of construction” test in order to take advantage of the section 45 renewable electricity production tax credit (PTC) for wind and other renewable energy facilities including geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects. The … Continue reading this entry

Developing a Business Case for Renewable Energy at Airports

The Airport Cooperative Research Program (ACRP) recently released Report 151: Developing a Business Case for Renewable Energy at Airports (the Report). Foley partner David Bannard is a co-author of the Report, assisting lead investigators, Stephen Barrett and Philip DeVita of HMMH. The Report is a companion to ACRP Report 141: Renewable Energy as an Airport … Continue reading this entry

Just in Time for the Holidays: President Obama Signs ITC and PTC Extension Into Law

On Friday, President Obama signed into law the bipartisan $1.1 trillion Consolidated Appropriations Act of 2016 and the $680 billion Protecting Americans From Tax Hikes (PATH) Act of 2015, better known as the omnibus and tax reform bill and the tax-extenders bill, respectively. As we discussed in detail in our prior blog post here, the … Continue reading this entry

Breaking News: Congress Set to Vote On Spending Bill Including 5 Year Extension of ITC and PTC

Congressional leaders reached a much anticipated bi-partisan agreement in an omnibus appropriations bill that includes an extension (with phasedowns) of the section 48 investment tax credit (ITC) for solar energy property and section 45 renewable electricity production tax credit (PTC) for wind. (The 2000+ page bill is available here.) A separate tax extenders bill (available … Continue reading this entry

IRS Releases Favorable Guidance for Individual Investors in Community Solar to Claim Section 25D Tax Credit

The IRS recently issued a Private Letter Ruling (PLR) clarifying that an individual investor in a net-meted community solar project may claim the federal residential Investment Tax Credit (ITC) under Section 25D of the Internal Revenue Code. (A copy of the PLR is available here.) The PLR is also significant because it appears to eliminate a … Continue reading this entry

White House Plan to Further Expand Renewable Energy Use

President Barack Obama announced on August 24, 2015, additional steps taken to increase the adoption of renewable energy. Among other things, the set of executive actions announced on Monday include making $1 billion in additional loan guarantee authority available and announcing new guidelines for distributed energy projects utilizing innovative technology and states looking to access … Continue reading this entry

New Report on Renewable Energy as an Airport Revenue Source

U.S. Department of Commerce Sets Stage for New Countervailing Duties on Chinese Solar Panels
The Airport Cooperative Research Program (ACRP) has recently published a guidebook on Renewable Energy as an Airport Revenue Source. The link to the guidebook on the ACRP website is here. Foley partner David Bannard is a co-author of the guidebook, for which the lead authors were Stephen Barrett and Philip DeVita of HMMH. Airports are … Continue reading this entry

White House Takes Aim at Solar for Low- and Middle-Income Americans

The Obama administration announced on Tuesday a plan to grant greater access to solar energy production for all Americans, in particular low- and middle- income communities. The White House announced that the Department of Housing and Urban Development (HUD) will release information next month to provide building owners and business additional knowledge regarding incentives and … Continue reading this entry

IRS Issues Notice 2015-25 Extending Safe Harbor for Continuous Construction in Order to Take Advantage of Renewable Energy Tax Credits

Yesterday, the IRS issued Notice 2015-25, which updates the guidance in Notices 2013-29,  2013-60, and 2014-46. These Notices provide that a taxpayer can show that it has “begun construction” of its qualified renewable energy facility by December 31, 2014 for purposes of taking advantage of the section 45 renewable electricity production tax credit (PTC) or the … Continue reading this entry

IRS Releases Guidance on Performance and Quality Standards for Small Wind Energy Property

The IRS recently released Notice 2015-4 (the Notice), which provides performance and quality standards that small wind energy property (defined under section 48(c)(4) of the Code as property utilizing a “qualifying small wind turbine” with a nameplate capacity of not more than 100 kilowatts (kW)) must meet to qualify for the section 48 investment tax … Continue reading this entry

Gov. Cuomo Signs Law Extending Real Property Tax Abatement for Solar Power Installation

Governor Cuomo has signed into law a bill that extends real property tax breaks for installing electricity-generating solar panels on New York City buildings effective September 23, 2014. The new law extends the existing incentive program to January 1, 2017.  Further, the new law doubles the possible tax breaks as compared to the existing incentive … Continue reading this entry

IRS Releases New Guidance on Beginning of Construction

The IRS recently released Notice 2014-46 (the Notice) which provides welcome guidance to tax equity investors and developers on the construction of wind, geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects for purposes of qualifying for the section 45 renewable electricity production tax credit (PTC), or the section 48 investment tax … Continue reading this entry

IRS Issues New Notice Concerning the Effect of Sequestration’s Haircut on Section 1603 Grant Awards

The IRS issued Notice 2014-39 this week clarifying the effect of sequestration on section 1603 grant awards. Section 1603 of the Internal Revenue Code provides a cash grant of 30 percent of the eligible basis of specified energy property. The purpose of the Section 1603 Program, created by the American Recovery and Reinvestment Act of … Continue reading this entry

New Renewable Power Financing and Investment Opportunities in New York as State Opens Billion Dollar Funding Initiative Through “NY Green Bank”

New York just recently opened the New York Green Bank (“NY Green Bank”), the largest of its kind in the nation. The NY Green Bank is a division of the New York State Energy Research and Development Authority and will have an initial capitalization of $210 million. This amount includes $165 million that was redirected … Continue reading this entry

Deadlines for SCE and SDG&E Renewable RFOs Fast Approaching

California’s investor-owned utilities (IOUs), Southern California Edison (SCE) and San Diego Gas & Electric Company (SDG&E), have issued new requests for offers (RFOs) in order to meet California’s Renewables Portfolio Standard (RPS). The RFOs are for Eligible Renewable Resources that provide both Renewable Energy Credits (RECs) and Energy and REC-only products. Facilities must be at … Continue reading this entry

Energy Bootcamp Series: Bankruptcy and Buying Distressed Assets

Foley & Larder LLP has been hosting a series of energy bootcamp Webinars. The most recent installment in this series was presented on July 18, 2013, entitled  “Bankruptcy and Buying Distressed Assets.” The session was presented by Richard Bernard and Matt Riopelle and moderated by Jeff Atkin. Among other topics, the panelists discussed the following … Continue reading this entry

Crowdfunding Renewable Energy

Direct investment in renewable energy projects has been an anticipated financing option among editorialists and bloggers the past year, and seems to finally be gaining traction in the United States. The idea that individuals would network and pool money for a common goal is not a novel concept. The American Red Cross has long employed this … Continue reading this entry