Clean tech and renewable energy companies in the U.S. are scrambling to complete their applications for qualified advanced energy project tax credits (Section 48C). Preliminary applications are due September 16 and final applications are due October 16.
When the dust settles, though, the lucky few who are certified for the 30% tax credit will need to find a way to convert the tax credit to cash in order to finance their projects.
My colleagues Greg Sanderson and Aaron Kowan recently spoke in a webinar on the subject and you can find the complete slide presentation on our Research page.
Section 48C credits are available to the owners of qualified advanced energy projects (“QAEP”) that are approved by the Department of Energy and certified by the Department of Treasury. QAEPs will be projects that will manufacture “advanced energy property” which is defined to include property that either produces energy, blends or refines renewable fuels or reduces greenhouse gas emissions.
Most strategies to monetize tax credits involve the exchange of a limited partnership or limited liability company membership interest for cash, pursuant to a partnership agreement (or limited liability company operating agreement) that allocates the benefits of the tax credits to the investor.
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