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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Energy

Date & Time
  • event Date

    Wednesday, August 16, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will guide energy counsel on key tax considerations and planning methods for solar energy facilities and developments. The panel will discuss federal and state tax issues, Inflation Reduction Act (IRA) issues impacting the solar industry, claiming the investment tax credit (ITC), depreciation and offsetting taxable income, ownership structuring issues, and other tax planning considerations.

Faculty

Jorge Medina
Miscellaneous

Mr. Medina is a partner in the Project Development & Finance practice and Head of Renewables (Americas). He focuses on federal tax policy and controversy issues involving renewable energy and energy transition assets and he has extensive experience structuring tax-driven transactions. Mr. Medina manages the execution of tax equity and debt transactions and represents both sponsors and tax equity investors in the energy sector in connection with energy storage, wind, solar, hydrogen, renewable natural gas, carbon capture, geothermal, biofuels and electric vehicle infrastructure projects. He is deeply familiar with all forms of tax equity structures, having closed dozens of partnership flip, lease pass-through and sale-leaseback transactions. Prior to joining the firm, Mr. Medina was co-leader of energy renewables and infrastructure at his prior law firm. He also previously served as associate general counsel-tax at automotive and energy company Tesla Inc., where he was primarily responsible for all tax issues across Tesla related to the energy and storage business and served as vice president and deputy general counsel at SolarCity, which Tesla purchased in 2016.

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Tony Grappone
Partner
Novogradac & Company, LLP

Mr. Grappone specializes in providing accounting, tax and consulting services to developers, syndicators and investors of developments that qualify for federal and state tax credits such as the low-income housing tax credit, historic rehabilitation tax credit, new markets tax credit, renewable energy tax credits and opportunity zone incentives. He is a frequent speaker at various renewable energy and other tax credit industry events and has contributed several articles on renewable energy to the Novogradac Journal of Tax Credits and serves as a technical editor of the Novogradac Renewable Energy Tax Credit Handbook.

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Eli M. Katz
Partner
Latham & Watkins LLP

Mr. Katz has extensive experience assisting clients on a wide range of complex transactions, including those in the renewable energy and financial sectors. His practice is focused on energy tax incentives, project development and financing, capital raising and deployment structures, mergers and acquisitions, and leasing transactions both internationally and in the United States.

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Description

Solar energy financing and development hinges on practical analysis of ownership structure and available tax planning techniques. Tax incentives create planning issues for developers and investors, requiring energy counsel to address various federal and state tax issues when advising clients.

Federal legislation incentivizes commercial and residential solar investment and development with the existing ITC. Maximizing the benefits of the ITC and other tax incentives is critical to solar energy transactions impacting an investor's desired return and exit along with amounts to be paid to developers. To reap these federal tax benefits, energy counsel must have in-depth knowledge of ITC requirements, the impact on a tax basis, depreciation rules, and fundamental ownership structures yielding the best tax benefits.

In addition to federal income tax issues, solar energy projects also raise state and local tax issues to consider. State tax incentives can be significant to the ownership structure, financing, and development of a solar energy project. Each state's tax system is different, especially concerning available incentives for renewable energy. Counsel must consider issues and challenges relating to choice of entity, sales and use taxes, property taxes, and excise taxes imposed by a state.

Listen as our panel discusses the federal and state tax issues facing solar energy financing and development, deal structures, and other tax planning considerations.

Outline

  1. Impact of Inflation Reduction Act on the solar industry
  2. Federal tax issues: ITC, expense rules, tax basis, depreciation
  3. State and local tax issues: state income tax, sales and use taxes, property tax, incentives
  4. Ownership structuring challenges and pitfalls to avoid
  5. Effective tax planning methods for solar financing and development

Benefits

The panel will review these and other key issues:

  • Recent legislation and guidance on tax incentives for solar energy
  • Requirements for claiming the ITC and pitfalls to avoid
  • The amount of the ITC and beginning of construction challenges
  • Understanding the progress expenditure rules
  • MACRS and bonus depreciation rules
  • Ownership structuring issues and maximizing federal and state income tax benefits