SPOTLIGHT SERIES: TIM STEGNER

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 Investments, Tim Stegner is committed to forging robust partnerships and pioneering solutions for Investors. He has over 20 years of experience advising institutional investors and has held positions as a Managing Director at prominent financial institutions such as BlackRock, Nuveen, and Northern Trust. As an advisor and entrepreneur, his strategic insights have been instrumental in propelling the growth trajectories of numerous startups. Tim graduated with his Master of Business Administration from the Thunderbird School of Global Management at Arizona State University. Complementing his advanced degree, he holds a bachelor’s degree from Colorado State University and from the University of Wales (UK).

 

To learn more about Tim, read our latest Spotlight blog series installment:

How did you get started in the tax credit investing industry?

After completing my MBA, I embarked on an exciting journey in offshore banking, working with Foreign International Sales Corporations (FISCs) and Domestic International Sales Corporations (DISCs). This role required me to relocate to prominent offices in Barbados and the Virgin Islands, which was a great experience early in my career. I learned a lot from collaborating with some of the top exporters in the United States.

What interested you about Foss & Company?

I was drawn to Foss & Company due to its reputation as a trusted partner to leading U.S. corporations, but also because the projects we finance create jobs and support sustainability initiatives. Our role in financing transformative projects is truly inspiring, especially given the importance of tax credits when it comes to fostering U.S. growth and economic development.

What do you find important or interesting about tax credits?

What I find most compelling about tax credits is they represent a win-win scenario for all parties involved. They not only facilitate development of essential projects in our energy infrastructure but also influence beneficial outcomes for both investors and communities.

What is one thing people may not know about tax credits?

One lesser-known aspect of Investment Tax Credits (ITCs) is that they can be utilized by companies of all sizes and can be carried back up to three years without the need to amend previous tax returns. By filing Form 1139, corporations can claim these credits swiftly and efficiently, bypassing the complexities of amending a full tax return.

How has the tax credit investing industry evolved and where do you see it going?

The industry poses an appealing method for fulfilling tax obligations. Looking ahead, I anticipate a significant increase in the adoption of tax credits as more businesses recognize the strategic, financial and high-impact advantages of investing in these programs. At Foss & Company, our team is the best in the business and works on emerging credits like Green NG, Carbon Capture, Historic Preservation and more. Experienced investors see a great deal of value in working with us on these cutting-edge projects that offer a higher Internal Rate of Return.  For new entrants, transferable credits (ITCs and PTCs) represent an ultra-low risk and easy way to get started. Corporations of all sizes can leverage transfer credits to optimize their tax strategy.

Any other insights you would like to add?

The urgency of evaluating tax credits cannot be overstated. The opportunities in this space are not only attractive but also time-sensitive. In 2022, U.S. corporations paid approximately $334 billion in taxes, a figure that the Congressional Budget Office projects will increase to $527 billion by 2031. This significant growth in corporate tax liability underscores the growing importance and potential scarcity of tax credits as a strategic financial tool.

The tax credit market is relatively small when compared to the total U.S. corporate tax liability. Historically, a small group of sophisticated and longstanding investors has dominated this market, but new legislation will encourage rapid market expansion and adoption of credits. Foss & Company, a full-service advisor skilled at navigating the world of tax credit investments, can help institutional clients find solutions that meet their strategic tax planning needs.

Those interested in learning more about Tim, can contact him at [email protected]