Financing a Project with a Tax Equity Investment
This practice note provides background on tax equity investments as well as the main concepts that counsel to both tax equity investors and renewable energy project developers should understand. Tax equity investments are investments motivated by the investor's desire to obtain access to tax benefits to which they would otherwise not have access. Tax equity investments are especially important as a source of financing for renewable energy projects. This practice note also discusses tax rules and principles that impact the structuring, negotiation, and drafting of renewable energy investment transactions.