From the Desk of Thomas Polich:
Dear Renewable Energy Friends and Colleagues:
As we enter March, we may feel as though we are now fully operating in 2024, a Presidential Election year somewhat different than others in that the principal political parties appear to have already settled on their candidates, a rematch in what may be one of the last of the Boomer Generation matchups. Despite the partisan rhetoric, policy and direction have been established in previous bipartisan review. A level of confidence around financing and recognition of the challenges is widely understood. As we look at the Inflation Reduction Act of 2022 (P.L. 117-169), and unfolding figures for 2023, we see growing investment strategies in the adoption and expansion of renewable and alternative energy sources. The $369 billion Act:
Renewable Energy Credits were the subject of tremendous efforts in 2023 to make them more market friendly and indeed, new trading markets are being developed. TAP Synergy Works, LLC is networking with the leaders in these developments and we are looking at an exciting portfolio of projects in 2024. We are seeing clarifications and platforms developing that will assist solar, storage, transmission, and grid edge technologies implementation and a growing recognition of realities, limitations, and scope capacities of these implementations requiring expertise. Transferability of the ITC Tax Credits is "changing the game" for financing solar+storage and renewable energy projects, increasingly significantly in 2024. The IRA of 2022 has given clean energy tax credit recipients the option to transfer/sell those credits to other parties; however, the transaction isn't as simple as a cash exchange. The tax credit isn't a product on a shelf - it's equity that can apply to a business or individuals annually annual tax liability. This means there's more involved and necessary oversight from the IRS during the transaction. The mechanics are complex, IRS guidance is trickling in. Now that the Inflation Reduction Act has been enacted, the focus has turned to understanding the details of implementing regulations and guidance as taxpayers evaluate the legislation's impact. Direct Transfer applies to non-profit, government and sovereign states, and, though not for residential or commercial companies, is a powerful new tool in the financial arsenal in the private development of larger-scale solar installations. Taxpayers need to carefully analyze what the act's changes mean from a capital allocation and deployment perspective, as well as how some of the changes could impact current, pending, or potential transactions and investments. I have written on the topic to provide some background information and to describe three companies (all with different models) that have and are fine tuning mechanisms to monetize the ITC without the need for direct Tax Equity investor participation before Placed in Service. It's perhaps a bit of a long read, but I'm sure it will entertain the "solar geek" in you and start generating some ideas about these new programs and how you might consider your participation. Once you've read through this, let's discuss next steps should you be interested in starting a program to transfer the ITC to participating investors. Contact me directly, thomas@tapsynergyworks.com or my associate, Paul Berry, paul@tapsynergyworks.com to obtain a copy of my memo on the IRA of 2022 opportunities. TAP Synergy Works, LLC (TAPSW), is a nationally recognized specialty legal firm, a leader in renewable energy. We work from coast to coast as well as in our progressive region of the Greater Rocky Mountains. We continue to be available for our clients and for opportunities in new ventures, providing contracting documentation, enterprise team assembly, and leadership within the dynamic world of zero-emissions energy. We originate and facilitate relationships and contract documents for Utility-scale and Distributed Energy Resource Developers as well as providing OME development legal services and a host of other consulting services where legal understanding is paramount for successful execution. Our expertise includes team leadership from the formation of special purpose entities through to power generation, PPAs, and revenue stream, from DERMS platforms to wind and solar+storage installations, from recognized large desert solar arrays to individual facility microgrids. Our interest is secure stakeholder agreements, democratization of energy, and climate protection through the teamwork that well crafted contracting documents make possible. All the brightest, Thomas Polich CEO, TAP Synergy Works, LLC |
Disclaimer
The materials on this website are provided for informational purposes only. They do not constitute legal advice. There is no implicit guarantee that this information is correct, complete, or up to date.Various articles and pages on this website contain links to other resources on the Internet. Those links are provided as aids to help you identify and locate other Internet resources that may be of interest, and are not intended to state or imply that we are affiliated or associated with, or is legally authorized to use any trade name, registered trademark, logo, legal or official seal, or copyrighted symbol that may be reflected in the links.
This website is not intended to create an attorney-client relationship between you and TAP Synergy Works, LLC. Unless you are a current client, please do not send any confidential information by email. You acknowledge that we have no obligation to maintain the confidentiality of any information you submit to us unless we have already agreed to represent you or we later agree to do so. Thus, we may represent a party adverse to you, even if the information you submit to us could be used against you in a matter, and even if you submitted it in a good-faith effort to retain us.
In some jurisdictions, this website may be considered advertising. We endeavored to comply with all known legal and ethical requirements in compiling this website. To the extent the State Bar Rule requires us to designate a principal office and/or a single attorney responsible for this website, we designate Durango, Colorado, USA as its principal office and Thomas Polich as the attorney responsible for this website.
The materials on this website are provided for informational purposes only. They do not constitute legal advice. There is no implicit guarantee that this information is correct, complete, or up to date.Various articles and pages on this website contain links to other resources on the Internet. Those links are provided as aids to help you identify and locate other Internet resources that may be of interest, and are not intended to state or imply that we are affiliated or associated with, or is legally authorized to use any trade name, registered trademark, logo, legal or official seal, or copyrighted symbol that may be reflected in the links.
This website is not intended to create an attorney-client relationship between you and TAP Synergy Works, LLC. Unless you are a current client, please do not send any confidential information by email. You acknowledge that we have no obligation to maintain the confidentiality of any information you submit to us unless we have already agreed to represent you or we later agree to do so. Thus, we may represent a party adverse to you, even if the information you submit to us could be used against you in a matter, and even if you submitted it in a good-faith effort to retain us.
In some jurisdictions, this website may be considered advertising. We endeavored to comply with all known legal and ethical requirements in compiling this website. To the extent the State Bar Rule requires us to designate a principal office and/or a single attorney responsible for this website, we designate Durango, Colorado, USA as its principal office and Thomas Polich as the attorney responsible for this website.