Structuring Construction and Tax Equity Bridge Financings for Wind, Solar and Battery Storage Projects

Description

Wind, solar and battery storage projects are complex transactions involving assessing available incentives and resolving unique issues arising from the acquisition, construction, and financing of such projects. In addition, project sponsors are increasingly seeking to obtain construction and tax equity bridge financing for such projects to take advantage of available tax incentives and benefits, including provisions introduced under the Inflation Reduction Act that reinstated the production tax credit for solar facilities, extended the investment tax credit, modified credit qualification requirements and amounts, and established the ability to transfer credits or elect a direct pay option.

Counsel must ensure that such bridge financing structures address change of control, collateral, sponsor credit support and other financing issues. Counsel must also prepare for specific contract pitfalls, especially those that require top-level client approval or long lead times and keep apprised of the relevant tax regulations impacting the corporate structure and construction schedule for such projects.

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