Tax Investments

SPOTLIGHT SERIES: JENNIFER HUA

Foss & Company is comprised of a group of experienced tax credit professionals, representing a depth of knowledge within their respective fields. In this blog series, we highlight different Foss & Company team members to shine a light on the diverse and dedicated people that help make us who we are. As Associate Vice President of Investments for Renewable Energy and Sustainable Technologies, Ms. Hua manages the closing and diligence process for renewable energy and sustainability funds and participates in the screening of potential new investments. Prior to joining Foss & Company, Ms. Hua worked in Business Development and led utility-scale solar and battery originations. Her experience includes corporate development and risk management roles at The Williams Companies. Ms. Hua holds an MBA from The University of Tulsa and a BBA from The University of Oklahoma. She is based out of our Denver office.  To learn more about Jennifer, read our latest Spotlight blog series installment: How did you get started in the tax credit investing industry?     I was first introduced to tax credit investing during my tenure at The Williams Companies, where I held various roles over seven years. During my time in Corporate Development, I built dynamic models for capital projects covering solar, battery and natural gas. Williams was not a corporate taxpayer at the time, requiring us to explore alternative routes to monetize Investment Tax Credits. This experience provided me with key knowledge in tax credit structures. The knowledge and expertise I gained from this exercise has been invaluable in my contributions at Foss & Company.  When did you join Foss & Company and what interested you about the company?    I joined Foss & Company in August of 2023 and was drawn to the organization’s rapid-paced environment and talented professionals. The tax credit industry is ever evolving,…

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Strategic Moves: Navigating Transferability-Flips for Institutional Investors

Strategic Moves: Navigating Transferability-Flips for Institutional Investors In the ever-evolving realm of institutional investment, savvy investors are turning their attention to innovative strategies to enhance portfolio returns. As the transferability market gains momentum, institutional investors are strategically leveraging Transferability Flip Transactions, or “t-flips,” to unlock latent value in their tax equity investments. In this landscape, partnering with a seasoned fund sponsor, such as Foss & Company, becomes not just a choice but a strategic imperative.  The Institutional Advantage in the Transferability Market:  Institutional investors are well-positioned to capitalize on the increasing activity in the transferability market. As regulatory landscapes shift and market dynamics evolve, institutions can leverage their scale and expertise to navigate the complexities of t-flips for optimal portfolio performance. Investors interested in making equity investments may enhance their after-tax returns by utilizing the t-flip structure to invest in renewable energy and sustainable technology projects. Investors interested in buying tax credits on a transferable basis can may find that a t-flip structure offers risk mitigation benefits when compared to a “direct purchase” of tax credits.  Understanding T-Flips:  A Transferability Flip Transaction is similar to the Partnership Flip structure that the industry has used for billions of dollars of transactions, but instead of having the tax credits allocated based on ownership in the project, the tax credits are transferred to a third-party buyer. There is still a tax equity partnership at the project level which can monetize the depreciation benefits of the project and establish a “step up” in the tax credit eligible cost basis to a fair market value.   Working with Experts:  Institutional investors and tax credit buyers seeking to capitalize on the transferability market’s potential are wise to align with a reputable fund sponsor like Foss & Company. Foss & Company, with its proven track record, not only…

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SPOTLIGHT SERIES: PETER BROWN

Foss & Company is comprised of a group of experienced tax credit professionals, representing a depth of knowledge within their respective fields. In this blog series, we highlight different Foss & Company team members to shine a light on the diverse and dedicated people that help make us who we are. As National Sales Director, he leads our capital raising efforts, working with institutional investors and large corporations to direct investment capital into high-impact, tax credit-generating projects in renewable energy and real estate. Prior to joining Foss & Company, Peter spent over twenty years in asset management and wealth management. His experience includes leadership roles focused on business development at Bank of America, Wells Fargo and Bank of Montreal. Peter’s other experiences include commercial banking, alternative investments and commercial real estate. He graduated from the University of Dayton with a Bachelor of Arts degree in Communications. To learn more about Peter, read our latest Spotlight blog series installment: How did you get started in the tax credit investing industry?     Tax credit investing has always represented an extraordinary opportunity. My first introduction to the tax credit investing industry has been with Foss & Company, however I’ve always been interested in the space and have several friends that have been in the business for some time.  When did you join Foss & Company and what interested you about the company?    I joined Foss & Company in November of this year as the National Sales Director. Foss & Company’s entrepreneur spirit and drive to do what’s best for the client is what interested me about the company. There is a “can do” attitude here at Foss that you don’t see across other organizations, and they are know for putting their clients first. What originally interested you about this industry?      I’ve worked in asset…

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Colors of Hydrogen

By: Dawn Lima, Vice President of Renewable Energy & Sustainable Technologies, Foss & Company    Shades of Gray, Blue, Green – Why do we need a color wheel to describe hydrogen and what do the colors mean? If you have been following the headlines and reading recent articles about the future of energy, you’ve likely read about hydrogen and the many colors used to describe it. Green, blue, gray, yellow, pink, etc. Why does a naturally colorless gas have so many colors? Hydrogen is a very promising energy source in a decarbonized future as it does not emit carbon dioxide (CO2) when burned. Hydrogen energy could have many uses, particularly to decarbonize heavy vehicle transportation and construction. What these Colors Mean So, why are there so many colors to describe hydrogen? The different colors of hydrogen refer to how the hydrogen is made: mainly the source of the hydrogen molecule and the source of the power used to generate the hydrogen. The most common colors include gray, blue and green. Gray Hydrogen: About 80% of hydrogen produced is currently gray.  To make gray hydrogen, natural gas is burnt in a process called steam methane reform (SMR) and carbon dioxide is released into the atmosphere, not captured and sequestered.  The power to generate the hydrogen is typically the local grid (not necessarily renewable energy) so the source mix will depend on the location of the plant and now decarbonized the grid in the region is. Blue Hydrogen: Around 1% of hydrogen produced.  Blue hydrogen is slightly less environmentally harmful than gray.  Blue is produced in the same way as gray, but the carbon dioxide is captured and sequestered, not released into the atmosphere.  The power to generate the hydrogen is typically the local grid (not necessarily renewable energy). Green Hydrogen:  Green…

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SPOTLIGHT SERIES: ANDREW MURO

Foss & Company is comprised of a group of experienced tax credit professionals, representing a depth of knowledge within their respective fields. In this blog series, we highlight different Foss & Company team members to shine a light on the diverse and dedicated people that help make us who we are. As the Vice President of Renewable Energy Portfolio Management, Andrew is in charge of all aspects of investment performance, working with sponsors on project compliance and tax credit investors on fund management. Prior to joining Foss & Company, he created a solar investment vehicle and managed its day-to-day operations. For 12 years prior to that he worked with top-tier solar or renewable energy companies, either financing assets or developing premier asset and portfolio management talent and processes globally. He has overseen some of the largest solar and wind farms in North America, as well as solar sites in Chile, Italy, Spain, England, and Canada. His education credentials include an MBA from ESADE in Barcelona, and a BA from UC Santa Barbara. To learn more about Andrew, read our latest Spotlight blog series installment: How did you get started in the tax credit investing industry?    In 2006, while working on Wall Street doing CleanTech sell side equity research, I came across an opportunity to develop a financing platform for a residential solar company in San Luis Obispo (SLO), CA. I packed up my Prius and drove from Manhattan to SLO, excited for the new opportunity to help a growing company focused on solar. We had some success developing and implementing home equity loans for solar and the team sold the first SunRun PPA deal, which was effectively a tax equity investment. From there I joined a structured finance desk with a solar developer raising tax equity in 2008. I haven’t…

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Treasury/IRS Propose New Rules for Implementing Section 48 Energy Tax Credits

By: Bryen Alperin, Partner and Managing Director of Renewable Energy & Sustainable Technologies, Foss & Company   The U.S. Treasury Department and IRS have recently announced the release of proposed regulations (REG-132569-23) for publication in the Federal Register. These regulations are set to amend the existing rules under section 48, incorporating modifications from the Inflation Reduction Act of 2022 (IRA), previous legislative changes, and various administrative guidelines. The Notice of Proposed Rulemaking (NPRM) extends over 127 pages and aims to provide both clarifications and updates concerning the energy tax credit. Initial Foss Takeaways: Key Points for Investors Uncertainty for Biogas Equipment: In a surprising outcome, the proposed rules indicate that “gas upgrading equipment necessary to concentrate the gas into the appropriate mixture for injection into a pipeline through removal of other gases such as carbon dioxide, nitrogen, or oxygen is not included in qualified biogas property”. However, it emphasizes the eligibility of costs associated with essential components of biogas projects, such as equipment for cleaning and conditioning the gas. This has caused confusion and uncertainty in the RNG industry, as many projects feature equipment that both cleans and concentrates the gas. The implication of the proposed rules is that investors will need to do a detailed review of the process flow diagrams and determine which costs are associated with equipment which cleans or conditions gas versus equipment that concentrates gas. Depending on the determination, large portions of existing RNG projects may not qualify for the ITCs they thought they would. The industry will be lobbying to have this definition changed, or further clarified. New “Placed in Service” Criteria: The NPRM proposes a new definition of “placed in service” for Section 48, replacing long-relied-on Section 46 regulations. The definition is as expected and states that projects generating tax credits are considered…

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SPOTLIGHT SERIES: MICHAEL YAGER

Foss & Company is comprised of a group of experienced professionals, representing the best in class within their respective fields. In this blog series, we highlight different Foss & Company team members to shine a light on the diverse and dedicated people that help make us who we are.     Michael joined Foss & Company in April 2023. As Vice President of Investments, he works with institutional investors and large corporations to direct capital that is set aside for federal and state taxes into high-impact, tax credit-generating projects with a focus on renewable energy and carbon capture. Prior to joining Foss & Company, Michael spent 10 years developing an all-electric, zero emission freight transportation system. During this time, he expanded the company into three new markets, sourced over a billion dollars of debt and equity capital, and garnered offtake agreements with Fortune 500 companies throughout the United States. Michael graduated from Texas A&M University with a B.S. in Aerospace Engineering and M.Eng. in Industrial and Systems Engineering. Get to know Michael in the latest Spotlight Series Blog:  How did you get started in the tax credit investing industry? Originally, I came from an entrepreneurial background in supply chain and logistics. As an engineer, I spent years developing a new freight transportation system and I then started working to commercialize the technology, so I saw firsthand how much effort went into getting large infrastructure projects financed. Since then, I wanted to move more directly into finance. I was excited at the opportunity to join Foss & Company in a role that allows me to help bring meaningful projects to completion while adding value to the corporations investing in them. When did you join Foss & Company and what interested you about the company? I joined Foss & Company in April 2023 in…

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