Tax Equity

Renewables Hero Image.

The U.S. federal government offers tax incentives for investing in renewable energy projects, including investment tax credits (“ITC”), production tax credits (“PTC”), and accelerated depreciation. Few developers are able to use the benefits directly. Tax equity transactions allow investors to monetize those benefits.

Industry-leading tax equity investors and sponsors trust Foley & Lardner as their strategic partner and go-to firm for all types of tax equity financings, including partnership/flips, sale/leasebacks, and inverted lease transactions.

Our lawyers are leaders in the tax equity market with extensive experience representing both sponsors and tax equity investors. We are extremely familiar with the issues that arise on tax equity transactions and effective solutions. When unique issues arise, we have both the tax equity and development experience to fashion practical and creative solutions that get deals done.

Tax Equity At-A-Glance

Our 38-lawyer core renewable project finance team has:

  • Closed over 30 tax equity transactions over the last two years, totaling over $3 billion.
  • Structured brand new comprehensive solar sale/leaseback programs for five different tax equity investors.
  • A team of prominent tax lawyers dedicated to renewable energy transactions who regularly structure tax equity deals to establish eligibility for tax incentives and provide “start of construction” and “safe harbor” review and opinions.
  • Ranked in Chambers USA for: – Projects: Power & Renewables: Transactional – Projects: Renewables & Alternative Energy
  • Industry-leading experience with utility scale, commercial & industrial (C&I) portfolios and community solar programs.
  • Extensive experience with tax equity syndications and club deals.

The Foley Difference

In addition to our extensive financing and transaction structuring experience, our lawyers have an in-depth commercial understanding of the projects we work on, and our tax, regulatory, environmental, and real estate attorneys are the go-to counsel in the industry. Our robust team of exceptionally talented and highly trained professionals has the knowledge, experience, and tools to review due diligence materials for tax equity financings in all fifty states.

We are familiar with solar, wind, storage, and alternative technologies, and how to address the unique issues that arise with state REC contracts, virtual PPAs, community choice aggregators, tax-exempt entities, and solar revenue puts. Our team provides the most efficient review possible, which is tailored to your needs and risk profile, including with diligence sampling when appropriate.

“Increasingly prominent team with a growing bench of talented young attorneys covering the range of energy concerns. Shows particular expertise in acting for some of the largest solar energy companies.”

Chambers & Partners Global 2023