Solar Financing Tax Equity Structures: Sale-Leasebacks, Inverted Leases, Partnership Flips, Tax-Credit Transfers
Changes After OBBBA, Choosing the Right Structure, Weighing Advantages and Drawbacks of Various Structures
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will examine current solar financing structures in the wake of the Inflation Reduction Act's (IRA) implementation and the subsequent changes under the One Big Beautiful Bill Act (OBBBA). The panel will discuss sale-leasebacks, inverted leases, partnership flips, and the increasingly common tax-credit transfer structure, analyzing advantages and drawbacks of each from legal, business, financial, and tax perspectives. The webinar will address how accelerated phaseouts, construction-start deadlines, and final IRS regulations are influencing deal structures today.
Outline
- Introduction
- Current state of the solar finance market and trends for the near future
- Choosing the appropriate tax equity structure
- Sale-leaseback
- Inverted lease
- Partnership flip
- Tax-credit transfer under Section 6418
- Regulatory framework and deadlines
- Key negotiation points
- Practitioner takeaways
Benefits
The panel will review these and other noteworthy issues:
- When to choose one structure over another or hybridize
- What are the main issues on which the parties spend the most time in negotiations?
- Strategies to meet construction-start deadlines for 45Y/48E eligibility before OBBBA phaseouts
- Key negotiation points: basis step-ups, change-in-law allocation, DROs, flip yields, tax insurance, recapture coverage, unwinds
- How credit transfers are priced, documented, and paired with bridge/back-leverage facilities
- Practical implications of PWA/apprenticeship and domestic content rules on deal structure
Faculty
Gabrielle Jacques
Senior Counsel
Norton Rose Fulbright
Ms. Jacques is a Senior Associate in Norton Rose Fulbright's New York office. Her practice is focused on... | Read More
Ms. Jacques is a Senior Associate in Norton Rose Fulbright's New York office. Her practice is focused on federal income tax law, with particular emphasis on renewable energy transactions.
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Hilary Lefko
Partner
Norton Rose Fulbright US
Ms. Lefko focuses her practice on all areas of federal income tax law, with a particular emphasis on tax... | Read More
Ms. Lefko focuses her practice on all areas of federal income tax law, with a particular emphasis on tax controversy and renewable energy tax issues. She represents developers and investors in various energy and renewable energy projects, including transactions involving section 45 production tax credits for the production of electricity from renewable resources, including the purchase and sale of wind, open-loop biomass, landfill gas, geothermal and refined coal facilities. Ms. Lefko also advises on section 48 investment tax credits for solar projects, the Section 1603 Treasury Grant Program and other renewable energy incentives.
CloseEarly Discount (through 10/03/25)
