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By Kimberly Carlini, Senior VP of Investments, and Bryen Alperin, Managing Director This blog is the second in a series that will explore the opportunities in the transferability of renewable tax credits for investing in renewable energy and reducing tax liability. The Inflation Reduction Act, signed into law on August 16, 2022, has created new opportunities to invest in a sustainable future. There are many options, but one of the more promising is new transfer provisions which allow for the transfer of renewable energy tax credits between taxpayers. With these new transfer provisions, a taxpayer can purchase a tax credit generated from an eligible project, for example, at $0.90 per $1 of tax credit and then apply the credit to reduce required tax payments to the IRS by the full $1. We know enough about transferability to be certain that this added feature in the Internal Revenue Code will allow for a meaningful new avenue to access tax credits from renewable energy projects, and we expect these changes to expand the population of taxpayers that participate in the renewable tax credit market. The industry anxiously awaits guidance from the IRS on the intricacies of transferability, and when that guidance will be delivered is still uncertain. However, we do have solid visibility into what participants can expect, including that: Taxpayers can elect to transfer all or a portion of their tax credits to a non-related transferee. Payment for credits must be in cash. The tax credit amount will not be included in taxable income, nor deductible. There are no caps or phase outs (unlike direct pay). Election must be made no later than the due date (including extensions) for the respective tax return, and is irrevocable. Transferees cannot re-transfer the credits. If the tax credit is generated by a partnership, the…
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Duke developed a space that flattens the organization, creates spaces for thinking, for collaborating and for cross-pollinating ideas. Read more here: Duke Energy shows off new office at Optimist Hall – Charlotte Business Journal
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Foss & Co was pleased to attend and participate in the Bloomsberg Sustainable Business Summit this week. It was a great event.
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Foss & Company was a proud sponsor of Novogradac’s annual historic tax credit conference, which was held in Nashville, TN on September 26-28. During the conference, Foss & Company hosted an event for its partners and clients at the Listening Room Café, George Barry and Eric Brubaker attended a breakfast honoring Senator Cassidy’s support of the federal historic tax credit program, Foss team members participated on two panels………and managed to have some fun out and about on Broadway.
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Growth continues in 2018 January 24, 2018, San Francisco CA – Foss and Company is pleased to announce that they closed out the 2017 calendar year having managed over $20 million in solar tax credit investments. The investments were made into seven unique projects that were all Massachusetts-based and approached 20 megawatts in scale. Foss Renewables Managing Director Alex Tiller said, “We were pleased with our 2017 results and are looking forward to investing over 10 times that amount in 2018 via our new renewable energy focused fund.” Tiller went on to say, “renewable energy investments are nothing new to this firm. Over our last 35 years we’ve managed over $500 million in renewable and alternative energy tax credit investments including some of the first large scale solar thermal SEGs projects in the Mojave Desert way back in the 1980’s. We’ve participated in landfill gas, refined coal and anaerobic digesters transactions as well. Foss and Company is a nationally recognized institutional investment management firm dedicated to providing corporate investors the greatest access to federal and state tax credit driven investments in the tax credit marketplace. Their services for solar developers include market pricing and transaction structuring, direct tax credit equity investments and private placement services. Additional information about the company is available at: fossandco.com
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Launches Innovative Funding Platform for Solar Developers September 11, 2017, Las Vegas Nevada (Solar Power International trade show), San Francisco California: Foss & Company announces the launch of TaxEquity.com, a web platform designed to optimize the tax equity investment process for renewable energy developers. Arranging financing for commercial and industrial solar projects is notoriously challenging, and getting to a term sheet with a qualified tax equity investor that can close is arguably the most difficult part of assembling the capital stack. There are only a handful of highly active tax equity investors, and the whole process can often seem cumbersome and confusing due to high variability in each project, intricacies of tax code, deal structure and interests of debt providers. Because of this, a considerable amount of due diligence must be conducted on each project, driving up costs and resulting in a slow evaluation process. These factors set a relatively high barrier to entry for developers; most professional tax equity investors won’t work with developers with projects or portfolios less than 3 megawatts in size. Foss Renewable Energy Partners Managing Director Alex Tiller said “The goal with TaxEquity.com is to allow more capital to flow to more renewable energy projects. We can achieve this by standardizing the way we interface with developers and evaluate their projects. Additionally, we will work with debt providers to generate standardized and preapproved documents that a developer can choose to use, which leads to a streamlined evaluation process. Combining the two previous steps with algorithm driven analyses, we hope to cut the time to terms sheet down to hours, rather than days.” Tiller added that in the near future, they would like to find a way to fund projects as small as 100 kilowatts in size. Renewable energy project developers can evaluate the system on…
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Solar Industry Veteran Alex Tiller to Launch Renewable Energy Tax Equity Fund September 1, 2017, San Francisco, California – Foss & Company is pleased to announce that Solar industry veteran Alex Tiller has joined the firm as Managing Director to launch a new tax equity investment fund and syndication platform focused on renewable energy projects throughout the US. The new group will be based in Denver Colorado and seeks to deploy $300 Million in renewable energy projects by the end of 2018. Foss Renewable Energy Partners primary focus is on photovoltaic solar and storage projects but may make discretionary investments in other renewable energy technologies. When asked about the new fund Mr. Tiller said, “due to the nuance and complexity of the tax code, the tax credit market is extremely inefficient for investors and energy project developers alike. Our goal is to streamline and simplify the process on both sides, allowing more capital to flow to high quality projects faster.” Mr. Tiller is the former President of Vancouver BC based Solar Alliance Energy, Inc. and the former CEO of Sunetric, previously Hawaii’s largest solar company. Tiller was also a founding partner of Sunetric Capital, Aloha Solar Energy, and Aloha Solar Partners. All three entities operated within the solar project development, financing, and asset management space. Prior to his career in renewables, Tiller led the development of a private equity investment fund focused on agriculture and he started his career at Fidelity Investments. Foss & Company is a national institutional investment management firm founded in 1983. The company has deployed over $5 Billion in cash equity from institutional investors including national insurance companies and large corporations. Foss provides its investors with a broad array of tax credit programs combined with the most efficient implementation available in the tax credit marketplace. To date the…
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