David Burton Discusses Sequestration and Wind Energy
Contact:
Cuts, due to sequestration, to the Treasury Department’s cash-grant program for renewable energy projects could have a big impact on the wind industry, according to Akin Gump tax partner David Burton.
Treasury’s Section 1603 cash-grant program allows companies to claim a 30 percent cash grant in lieu of the investment tax credit (ITC), but Burton tells North American Windpower that “more solar projects may opt for the ITC” because of the sequester. Burton adds this will create “even more demand for tax equity” of which there is already a shortage, and it might lead to “wind projects having to pay higher yields to tax-equity investors.”
© 2024 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.