Global Project Finance > Tax Equity Telegraph
06 Apr '16

This is an article‎ that David Burton published in Tax Notes that discusses three recent Internal Revenue Service rulings in which permission was granted, in what appears to be solar energy project, inverted lease transactions, in two instances to make a late election to pass through the investment tax credit to the lessee and in a third instance to make a late election out of bonus depreciation. 

Here is a link to the article.


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29 Mar '16

Navigant Consulting on February 19 submitted a report, Solar Project Return Analysis for Third Party Owned Solar Systems, to the Arizona Public Service (APS). The thesis of the report is that residential solar developers are charging homeowners unnecessarily high rates given the extension of so-called bonus depreciation1 and Congress pushing out when the investment tax credit ratchets down from 30% to 10% by a number of years. The implication of that thesis would seem to be that if the solar companies accepted more reasonable after-tax returns they would be able to lower the rates charged to homeowners; then the homeowners could pay more to utilities for transmission and other infrastructure that they need access to when the sun is not shining while still paying less overall than customers who have not adopted solar.

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16 Dec '15

Last night, Speaker Paul Ryan (R-WI) and other congressional leaders released a proposed legislative compromise that would fund the government through September 30, 2016, extend tax credits for solar and wind projects and lift the ban on exporting oil. The text of the bill is available here, with the energy tax credit provisions starting on page 2002.

Political Climate

In a nimble procedural maneuver, the House will vote on two separate bills: an omnibus spending bill and a tax extenders bill. Despite being in the nature of tax extenders, the extensions of the wind and solar tax credits has been included in the omnibus spending bill.

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19 Oct '15

Akin Gump Strauss Hauer & Feld LLP partner David Burton will chair the American Wind Energy Association’s webinar on October 27 at 3 p.m. ET on YieldCos. The other panelists are Ray Wood (Managing Director – Head of U.S. Power & Renewables for Bank of America Merrill Lynch) and Julie Dumoulin-Smith (Executive Director – Equity Research, UBS Securities LLC).

YieldCos have opened up new capital markets for wind projects while creating enormous buzz around growth potential. The sector has also experienced challenges in turbulent markets; this webinar will discuss the latest news share analysis as to how YieldCos may fare in the future.

Registration for the webinar is available here.

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01 Oct '15

Arizona has enacted Arizona House Bill 2670 (adding Arizona Revised Statute 41-1520 and amending Arizona Revised Statutes 42-5063, 42-5159, 42-6012, 43-1083.04 and 43-1164.05), which includes taxpayer-friendly revisions to the state’s tax credit for investment in renewable energy facilities used for self-consumption (with such revisions now including defining “self-consumption” very broadly, as described below).

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10 Sep '15

Here is a link to an article by David Burton and Richard Page published on Solar Industry’s website.

The article describes a recent Internal Revenue Service (IRS) private letter ruling that blesses individual taxpayers claiming a 30 percent tax credit under Section 25D of the Internal Revenue Code for owning solar modules that are part of a community solar project. The facts of the ruling are that the individual owners of the community solar project benefit from a net metering program with the regional utility so that the value of the electricity that the project provides to the grid reduces the electric bills for the project owners' residences. Prior IRS guidance regarding community solar had not sanctioned this type of net metering arrangement. The ruling was first made public by an industry group. Since the article was written, the IRS has also released the ruling and assigned a number to it. Here is a link to P.L.R. 201536017 (Jul. 28, 2015).

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