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.
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 the wake of the passing of the Inflation Reduction Act. I was impressed by the fact that Foss & Company has been active in the tax credit industry since 1983 and since that time they have grown into a full-service shop that provides a breadth of services to clients. Foss & Company’s dedicated team sources and underwrites projects so clients can invest in the tax credit space with confidence while taking advantage of a variety of different types of projects such as renewable energy, historical rehabilitation, and carbon sequestration.
What do you find important or interesting about tax credits?
Tax credits are a valuable government tool for promoting investment behavior. By offering tax incentives, the government can accelerate the development of nascent industries, such as clean energy. In addition, tax credits help bridge the gap in funding by providing additional capital for the restoration of historic buildings, which can revitalize surrounding neighborhoods and local economies.
What is one thing people may not know about tax credits?
Tax credit investments provide the ability to put tax dollars to work by earning attractive double-digit returns. It is rare for a company to find an opportunity where they get to choose where to deploy their tax dollars. Having that ability can enhance their competitive edge all the while generating returns on tax dollars that would otherwise not earn a return.
How has the tax credit investing industry evolved and where do you see it going?
The passing of the Inflation Reduction Act in 2022 created a tailwind for the industry. By extending the existing tax credit programs, adding new eligible technologies, and providing a new mechanism for the transfer of credits, the conditions are in place for the tax credit marketplace to grow for years to come.
Any other insights you would like to add?
As the world faces pressing environmental challenges, tax credits offer a valuable mechanism to channel private capital towards projects that drive positive change. By incentivizing investments in renewable energy, carbon capture and other impactful sectors, tax credits play a pivotal role in accelerating the transition towards a more sustainable and resilient future. It is an exciting time to be involved in the tax credit industry as we work towards creating a greener and more prosperous world through strategic allocation of capital.