INSIGHTS

UNDERSTANDING YOUR TAX CREDIT OPTIONS IS ESSENTIAL FOR SUCCESS

Providing in-depth analysis on the industry’s more complex matters for those interested in tax equity investment.

tax credit options

TAX CREDIT INCENTIVES FOR CARBON SEQUESTRATION: POTENTIALLY THE MOST IMPACTFUL U.S. POLICY TO BATTLE CLIMATE CHANGE

The Bipartisan Budget Act of 20181 expanded the §45Q2 tax credit, the most important federal incentive for encouraging private investment in the development and use of carbon capture technologies and facilities. Tax credits for the capture and long-term, permanent storage of carbon oxides generate a competitive financial return and have a positive environmental impact on the world. In addition, reducing CO2 emissions mitigates climate change and help keep the increase in global average temperature to well below 2°C above pre-industrial levels. Keeping global average temperature below 2°C above preindustrial levels is a fundamental goal of the Paris Climate Agreement, the highest priority environmental, social, and governance (ESG) issue facing investors.

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WHITE PAPERS

TAX CREDIT INCENTIVES FOR CARBON SEQUESTRATION: POTENTIALLY THE MOST IMPACTFUL U.S. POLICY TO BATTLE CLIMATE CHANGE

The Bipartisan Budget Act of 20181 expanded the §45Q2 tax credit, the most important federal incentive for encouraging private investment in the development and use of carbon capture technologies and facilities. Tax credits for the capture and long-term, permanent storage of carbon oxides generate a competitive financial return and have a positive environmental impact on the world. In addition, reducing CO2 emissions mitigates climate change and help keep the increase in global average temperature to well below 2°C above pre-industrial levels. Keeping global average temperature below 2°C above preindustrial levels is a fundamental goal of the Paris Climate Agreement, the highest priority environmental, social, and governance (ESG) issue facing investors.

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Tax Aspects of Renewable Energy Transactions: Renewable Investment Incentives, Transaction Structures, and Tax Matters – March 2021

Intended to promote production of energy from renewable energy resources, renewable energy tax credit programs provide a variety of federal and state subsidies, credits, and incentives to finance the investment and production of renewable energy. This white paper provides detailed insights into renewable energy transactions, showcasing to new investors that they can efficiently optimize the monetization of tax benefits derived from renewable energy projects.
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Federal Tax Incentives for Rehabilitating Historic Buildings

The Federal Historic Preservation Tax Incentives Program is the nation’s most effective program to promote historic preservation and community revitalization through historic rehabilitation. It generates much needed jobs and economic activity, enhances property values in older communities, creates affordable housing, and augments revenue for Federal, state, and local governments. The Federal Tax Incentives for Rehabilitating Historic Buildings: Annual Report for Fiscal Year 2020 includes detailed insights into the programs’ accomplishments and select projects from 2020 and more.
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TAX CREDIT INVESTMENTS ARE ESG INVESTMENTS

Institutional investors and corporates inject over $25 billion per year into the allocated tax credit market. However, Foss & Company research suggests there are still billions of dollars of tax capacity available that could be deployed into tax equity markets to support environmental and sustainability projects.
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COVID-19 Tax Credit Market Impact Survey Results

In an effort to aid our investor, developer, and service partners in the tax equity marketplace, we performed a survey on the marketplace’s response to COVID-19. Questions included themes of market trends, volume, credit pricing, and buy-side investment underwriting.  
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Allocated Tax Credit Advancements

Intended to promote production of energy from renewable energy resources, renewable energy tax credit programs provide a variety of federal and state subsidies, credits, and incentives to finance the investment and production of renewable energy...  
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Allocated Tax Credit Investments GAAP

Although economically accretive, allocated tax credit investments can have less than optimal or, in some cases, adverse accounting consequences, including below the line recognition of tax credit benefits and asset impairment due to basis reduction...  
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A Post-Tax Reform Primer on U.S. Tax Credits

A lower tax rate won’t necessarily leave corporations in the best possible situation. The tax law curtailed or eliminated many business deductions, such as putting new limits on interest deductions and a new ceiling on, and repeal of carrybacks for, net operating losses...  
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Tax Credit Investments Are ESG Investments

Institutional investors and corporates inject over $25 billion per year into the allocated tax credit market. However, Foss & Company research suggests there are still billions of dollars of tax capacity available that could be deployed into tax equity markets to support environmental and sustainability projects.
Download White Paper