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Tax Issues for Solar Energy Projects: Investment Tax Credit, Ownership Structuring, Federal and State Tax Challenges

Note: CPE credit is not offered on this program

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, August 16, 2023

Recorded event now available

or call 1-800-926-7926

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.


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.



  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


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


Grappone, Tony
Tony Grappone, CPA

Novogradac & Company

Mr. Grappone specializes in providing accounting, tax and consulting services to developers, syndicators and investors...  |  Read More

Katz, Eli
Eli M. Katz

Latham & Watkins

Mr. Katz has extensive experience assisting clients on a wide range of complex transactions, including those in the...  |  Read More

Medina, Jorge
Jorge Medina

Shearman & Sterling

Mr. Medina is a partner in the Project Development & Finance practice and Head of Renewables (Americas). He focuses...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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