Commercial Real Estate? The IRA is for you, too!
Some people may not be paying attention to the Inflation Reduction Act (IRA) thinking it only applies to renewable energy companies. But a hidden gem of this legislation is that it provides tax incentives for others, too - like technology-neutral benefits, personal home opportunities, and yes - even commercial real estate incentives! Here a couple of opportunities you could be considering if you’re involved in commercial real estate, and a case study below to illustrate the possibilities.
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Multiple benefit planning: integrating CO2 sequestration with renewable energy sources to deal with the energy penalty
Integrating CO2 sequestration with renewable energy sources represents a forward-thinking approach to addressing climate change, and ongoing technological advancements and cost reductions in both renewable energy and carbon capture technologies are making this integrated solution increasingly feasible.
The tax structures needed to maximize incentives takes having a tax lawyer who is as committed to your projects like this as you are. Contact Drew Willey Law today to have the partner you need.
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45Q Carbon Sequestration Tax Credits Explained
The 45Q tax credit is a U.S. federal incentive aimed at reducing industrial carbon dioxide (CO2) emissions through carbon capture, utilization, and storage (CCUS) methods. It provides a financial incentive, in the form of a tax credit, for businesses that capture and sequester carbon dioxide. The "45Q" name refers to the specific section of the U.S. tax code where this policy is found.
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Enhanced Oil Recovery Tax Credits: Then and Now, Drew Willey Law's Tax Planning Contributions
At the start of my legal career, I published an article entitled, Resurgence of EOR Credits: Oil Tax Planning Opportunity, in the Texas Tax Lawyer, Vol. 43 No. 2, Winter 2016: 116-17. Print and Internet. That article correctly predicted the return of EOR tax credits, as later validated by other industry experts. Today, we are working to help businesses take advantage of tax credits in EOR projects again when they utilize carbon sequestration in their CO2 EOR projects. For some historical review, I’m posting today an overview of EOR, and re-publishing the text of our successful entry into the world of energy tax law.
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Carbon Sequestration Overview & Tax Planning Importance
You may have heard about carbon sequestration opportunities with the new tax incentives in the Inflation Reduction Act (“IRA”), but what is it, why does it matter, and how will it contribute to the energy transition? Once we have that base knowledge, we can explore the tax credits, like 45Q credits, available for projects in future posts.
Carbon dioxide (CO2) sequestration, often referred to as carbon sequestration, is a set of technologies aimed at capturing, storing, or utilizing carbon dioxide from the atmosphere or directly from emission sources. This process is critical in the global effort to mitigate climate change, as it helps reduce the overall concentration of CO2, a predominant greenhouse gas (GHG), in the Earth's atmosphere.
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Empowering Renewables: Conducting the Financial and Operational Symphony of Inverted Leases
As you explore the complex yet innovative financing realms of renewable energy projects, you may stumble upon the "Inverted Lease" structure, which serves as a pivotal model in tax equity financing. This structure intricately weaves together the financial and operational facets of a project, bridging the tax appetites and capital needs of the involved entities.
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Diving Deep into the Sale-Leaseback Structure in Tax Equity Financing
Embarking on the journey of developing renewable energy projects often demands significant capital investment and a strategic approach to finance and operations. The Sale-Leaseback structure stands out as a popular and effective method for marrying the financial and operational aspects within the renewable energy sector, particularly in the realm of tax equity financing.
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Understanding the Partnership Flip in Tax Equity Financing
The Partnership Flip is one of the most widely used structures in tax equity financing for renewable energy projects, notably in the United States. Engaging both project developers (sponsors) and tax equity investors, this mechanism helps to merge the financial, operational, and tax aptitudes of different parties to bring a project to fruition.
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Unveiling the Role of Energy Tax Equity Sponsors & Investors
In an era where renewable energy sources are becoming more imperative for a sustainable future, the role of financing mechanisms like tax equity investments has become increasingly crucial. But how do such mechanisms work, and who are the key players involved? The spotlight here falls on the enigmatic yet pivotal player: the energy tax equity sponsor.
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Navigating the Complex World of Energy Taxation with Specialized Legal Counsel
In a world where energy remains a pivotal axis around which global economies revolve, safeguarding ventures in this sector against the intricate web of tax and legal challenges is paramount, while proactively taking advantage of new opportunities the energy transition and the Inflation Reduction Act bring. Drew Willey Law stands as a beacon, guiding entities through their energy taxation needs with strategic foresight.
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