Renewable Energy Tax Credit

Overview

"Every individual I have met at Blank Rome is impressive. They are strong in all areas. They are my first choice as counsel and will remain so.” 

— Client feedback, Chambers USA

Businesses remain optimistic about further growth in the renewable energy industry, which is estimated at $200 billion annually. The long-awaited multiyear extension of Renewable Energy Tax Credits could allow you to continue financing your solar and fuel cell transactions as well as wind and biomass facilities. 

Blank Rome’s tax attorneys are well versed at finding efficient solutions to structure, negotiate, and close your renewable energy projects. At the same time, we’re able to balance the goals of lenders, tax equity (direct and fund) investors, and developers to achieve an outcome that meets your objectives.

Because our attorneys have worked on tax credits since the program’s inception, we have deep knowledge of your industry, including the tax incentives available for your renewable energy projects, such as Production Tax Credits (“PTCs”), Investment Tax Credits (“ITCs”), and the U.S. Treasury Grant. 

How We Can Help

  • assist in strategic planning for projects, including the evaluation of renewable portfolio standards, federal incentives, and sale of state renewable energy credits
  • advises developers through the zoning and permitting process
  • assist developers and lenders in the financing of renewable energy developments, including reviewing financing documents, obtaining stimulus funds and other federal financial incentives, and issuing required legal opinions
  • draft contracts for the construction of utility-scale energy facilities and evaluates associated licensing and technology transfer agreements
  • negotiate, structure, document, and close renewable energy tax credit transactions, including those for residential, ground-mounted, and utility-scale solar facilities, and wind and bioenergy production

What Sets Us Apart

  • Members of our renewable energy tax credits team are frequently invited to write and speak on current tax and real estate issues at conferences such as the Novogradac Annual New Markets Tax Credit Conferences and CohnReznick’s Annual New Markets Tax Credit Summit and Conferences.
  • Several attorneys serve as adjunct professors or lecturers at the Graduate Tax Program (LL.M.) of Georgetown University Law Center, George Washington University Law School, and the Real Estate Institute at Temple University.
  • Members of Blank Rome’s tax credit team have published several books and articles on tax credits such as “Tax Credits: Historic Boardwalk Guidance.”
  • Several attorneys have experience as CPAs, as state and federal governmental officials, and in a “Big Four” national energy practice.
     

Experience

  • Represented an investor with respect to several portfolios of ground and roof-mounted utility photovoltaic electricity generating systems in North Carolina that qualified for solar investment tax credits.
  • Represented PECO Energy Company, a unit of Exelon Energy Delivery and Pennsylvania’s largest utility, in PECO Energy Company v. Commonwealth, in which the Pennsylvania Super Court unanimously reversed the en banc Commonwealth Court and granted PECO a refund of $55 million of Public Utility Realty Tax Act ("PURTA") taxes. The case involved the interplay between the Electric Competition Act and the Tax Reform Code.
  • Represented New Jersey Natural Gas Company in the New Jersey Tax Court, in which Presiding Judge Joseph C. Small urged the Legislature to modernize the “regular place of business” requirement, which generally requires taxpayers that do not maintain out-of-state offices to allocate 100 percent of their worldwide income to New Jersey. On December 19, 2008, the New Jersey Legislature repealed the “regular place of business” requirement.
  • Represented a large public utility on the state income tax treatment of the disposition of noncore business assets and represented the utility in state tax litigation concerning the taxation of the gain on such disposition.
  • Advised on tax and legal issues associated with the internal restructuring of a renewable energy company, which realigned its activities into three distinct business segments.
  • Provided strategic tax advice and restructuring alternatives to several Fortune 500 energy companies related to the integration of newly-acquired businesses and disposition of assets.
  • Assisted clients in evaluating sales tax and gross receipts tax aspects of power purchase agreements.
  • Obtained a favorable private letter ruling for an energy equipment manufacturer.
  • Developed models to assist energy companies in tracking their trading and the corresponding tax treatment of emissions credits and allowances.
     

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