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Course Details

This CLE course will provide energy and finance counsel with a briefing on certain critical legal, tax, and financing considerations in wind, solar, and battery storage projects. The panel will also review avenues to obtain financing for the project and leverage existing tax incentives.

Faculty

Description

Financings of wind, solar, and battery storage projects are complex transactions involving the assessment of evolving tax incentives and the resolution of unique legal and financing issues.

Recent legislative changes under the One Big Beautiful Bill Act (OBBBA) have significantly modified the Inflation Reduction Act's provisions, including the termination of tech-neutral credits for certain projects and the introduction of foreign entity ownership restrictions. The panel will explore the current legal, tax, and financing landscape, including strategies to utilize remaining incentives.

Counsel must ensure that bridge financing structures address change of control, collateral, sponsor credit support, and compliance with new Foreign Entity of Concern (FEOC) restrictions. Contractual pitfalls, especially those requiring top-level client approval or long lead times, must be managed with an eye to updated tax regulations and construction timelines.

Listen as our panel of authoritative practitioners provides their perspectives and analyses on the evolving tax incentives, documentation, and financing issues for wind, solar, and battery storage projects

Outline

I. Introduction

II. Overview of current tax incentives and benefits, including changes under the OBBBA, such as placed-in-service deadlines, phase-out schedules and compliance with FEOC restrictions

III. Review of bridge financing structures and documentation

IV. Change of control, collateral, sponsor credit support, and other financing considerations

V. Contract issues and regulatory considerations impacting project development and financing

VI. Practitioner takeaways

Benefits

The panel will review these and other key issues:

  • How are construction and tax equity bridge financings structured under the revised Inflation Reduction Act and OBBBA?
  • What are the unique issues in negotiating and structuring such financings?
  • How do various contract terms and deal issues affect financing and tax incentives?
  • What are the implications of the FEOC restrictions and placed-in-service deadlines on financing strategies?
  • How do direct pay and transferability mechanisms function under final IRS regulations?
  • What impact do the phase-out timelines and bonus credit limitations have on project viability?