Shariff Barakat Discusses Tax-Equity and Project Finance Developments with CCBJ

Akin tax and projects & energy transition partner Shariff Barakat has been featured in the Corporate Counsel Business Journal article “Taking Advantage of Tax Equity.” The article discusses Barakat’s practice, the potential tax-equity and project finance implications of the Biden-Harris administration legislation, among other topics.

Discussing his practice, Barakat, who joined Akin Gump last year (learn more here), said, “I work mainly on renewable power projects, on the finance and tax side. In the United States, many technologies – and renewable energy projects in particular, such as solar and wind power plants – are subsidized by the federal government using tax credits. There are relatively complex financing structures in place to efficiently monetize those tax credits, and those structures are often referred to as ‘tax equity.’ I specialize in tax-equity financing, and for the last number of years it’s been very solar and wind focused.”

Then, looking at the project finance developments in the Biden-Harris administration legislation, Barakat said he expects to see significant changes and opportunities in project finance and development space. Barakat further expounded to note that the administration is very focused on renewable energy. He said, “There’s already a very eager attitude, openness and a desire to invest in and develop renewable energy projects, infrastructure projects, pipelines for captured carbon or hydrogen, those kinds of things.”

Barakat also offered advice to businesses seeking to participate in tax equity and the tax-equity markets, “I think there is untapped potential there. Tax equity is something to take a look at to see if your organization might have an appetite for it. The way I like to describe it to people is that you can cut a check to the Treasury or you can cut a check to a renewable energy project developer. Those are both methods to pay your taxes, but by doing the latter and supporting a developer, at a fairly minimal risk, there are some good returns to be had.”

To read the full article, click here.