Renewable Energy Tax Credits
Leverage Law Group is an active participant in this expanding and highly specialized area of tax credit law. Renewable Energy Tax Credits (“RETCs”) are financial incentives to assist the development, implementation, and use of clean, renewable energy projects.
RETCs promote the investment of capital resources in the purchase and installation of equipment for the production of energy. RETCs are generated at the project level when the renewable energy equipment is placed in service. The three commonly-used RETC structures are partnership flips, lease pass-throughs (or inverted leases), and sale-leasebacks. Leverage Law Group’s attorneys have experience with each of these structures and their relevant tax, construction, operating, and other risks and benefits.
The attorneys of Leverage Law Group represent one of the largest investors in the RETC industry in connection with “green energy” projects. Additionally, LLG represents smaller investors, tax credit syndicators and their clients, and syndication investors alone. The firm also delivers the necessary tax opinions to the tax credit equity investor in these transactions. Leverage Law Group has significant experience representing developers of RETC projects both on a project-specific and programmatic basis. Finally, the firm provides counsel and advice to RETC lenders and non-tax equity investors. Leverage Law Group’s attorneys are involved in all aspects of structuring transactions to maximize the aggregate benefit to the firm’s clients. As counsel to RETC participants, the firm is responsible for structuring the transaction and preparing and negotiating operating agreements, lease agreements, real estate acquisition and disposition documents, power purchase agreements, engineering procurement and installation agreements, and other appropriate documentation at various levels throughout the selected RETC structure, including entity or asset purchase and sale agreements (whether as part of or prior to the financing structure). Our broad client base and experience with all stages of renewable energy development—from initial permitting and contracting to financial close; during construction and operation; and finally through exit and restructuring—make us uniquely suited to provide counsel on best practices and find solutions that provide the right optionality and flexibility for all participants.
Leverage Law Group has developed particular expertise in combining RETC structures with NMTC, tax-exempt finance and other tax-advantaged arrangements to provide additional leveraged benefits which can mean the difference in making worthy projects economically viable to all transaction participants.
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