John Marciano Quoted by Bloomberg on Tax Bill’s Impact on Clean Energy
John Marciano, co-head of the global project finance practice at Akin Gump, has been quoted in the Bloomberg story “A $12 Billion Clean-Energy Tool That U.S. Tax Reform Could Kill,” regarding the tax legislation pending in the U.S. Senate. The article reports that the bill would significantly hobble the supply of tax-equity investment, a critical source of clean-energy finance.
According to Marciano, about half the companies that invest in tax equity for solar farms, and a majority of wind investors, may find the new tax policies make these deals irrelevant. That, the article says, poses a threat to the tax-equity market. “It literally will grind our industry to a halt,” Marciano said. “Developers would be fighting for the few remaining investors.”
The financing format, as noted in the article, accounted for about 21 percent of the $58.5 billion of total U.S. renewable-energy investment in 2016.