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Renewable Energy Tax Credits

We simplify the process for energy property developers to monetize their tax credits and offer convenient access for accredited investors seeking tax credits.

With the passage of the Inflation Reduction Act in 2022, renewable energy investment tax credits,

Investment Tax Credits (“ITC”), are directly transferable between energy property developers and credit buyers.

These tax credits incentivize the usage of eco-friendly energy sources benefiting the environment and the economy by expanding the number of covered technologies, providing extra tax credits for projeccts serving job creation, manufacturing and economic justice goals, and creating new pathways to monetize the credit.

We assist energy project developers and owners across the United States who generate federal income tax credits through qualifying properties. Often, these developers have excess tax credits that they wish to monetize, providing them with additional equity to reinvest in their projects, to pay off development loands, or start new projects. We simplify the process for developers to monetize their tax credits and offer convenient access for accredited investors seeking tax credits.

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Our Process

We establish annual funds to invest in credit generating projects completed within the applicable year.  These funds provide renewable energy firms and developers with a single source to monetize their tax credits while also providing investors with a single source for project and tax credit research as an investment vehicle. 

Step 1
Developers and renewable energy consultants partner together to fully leverage all possible renewable energy ITCs in an energy project.
Step 2
Financial statements, agreements, and qualifying expenses of the project are reviewed to ensure that the renewable energy ITCs are generated in accordance with applicable laws and IRS regulations.
Step 3
Offerings are created to execute agreements with the credit generating projects to facilitate the transfer of the credit.
Step 4
Accredited investors subscribe to the offerings and receive an allocation of renewable energy ITCs, thus potentially creating a reduction in taxes.

Are you a developer seeking funding?

We simplify the process for developers to monetize their tax credits and offer convenient access for investors seeking federal tax credits. Here’s how it works for developers:

  1. Tell us about your project by providing as many details as possible in the corresponding form. 
  2. We will provide a term sheet to monetize the credits your project qualifies for.
  3. Lock in your terms and payment options.
  4. We review financial statements, agreements, and qualifying expenses, to ensure that the tax credits are generated in accordance with applicable laws and regulations
  5. Receive the capital from monetizing the project's tax credits in accordance with agreed upon terms. 
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Tell us about your project

Fill out the information below and a member of our team will reach out to you.

*Your Name
*Company Name
*Email
*Phone
*Project Name
*Project Location
*Project Budget
*Interconnection Date
Other Relevant Project Information
Learn More About Credits
Inflation Reduction Act (IRA) Facts
  • Section §6418 of the Inflation Reduction Act (IRA) of 2022 increased the number of qualifying energy properties and credit amount.
  • 11 types of clean energy credits can be transferred. §48, the Investment Tax Credit (“ITC”), is the most common.
  • RETC credits can carry back three years and forward up to 22 years.
  • 110 billion in new clean energy manufacturing investment
  • 170,000 new jobs with 1.5 million new jobs projected over next decade
  • 1 billion tons reduced greenhouse gas emission by 2030 (DOE estimate)
Increased Tax Benefits
  • Base credit rate is 6%. 
  • Renewable energy projects can receive increased tax benefits if they meet prevailing wage and apprenticeship (“PWA”) requirements. 30% full rate with PWA compliance. Projects under one MW are exempt.
  • Can stack with domestic content (additional 10%), energy community (additional 10%), and low-income community (additional 10-20%) bonus credits called “adders.”
  • Credit claimed in year project placed in-service based on qualifying renewable energy property cost.
Ideal RETC Credit Purchaser
  • Individuals with passive income from trade or business activities without material participation and/or most rental real estate activities
  • C-corporations that are not closely held or personal services corporations
Credit Purchaser Benefits
  • Can offset up to 75% of passive income
  • One year credit versus multi-year; investors can purchase annually as needed
  • May not need to pay estimated taxes
  • Can carryback three years or carry forward 22 years
  • Investment benefits moving toward a cleaner environment
Recapture/Credit Risk & Remedies

Five-year recapture period starting with day of credit transfer.

Triggers

  • Property ceases to be a qualified energy property
  • Change in ownership of the energy property
  • Basis is challenged by IRS and ultimately reduced

Risk Remedies

  • Cost segregation report from 3rd party during due diligence process to verify credit qualification
  • Recapture/Cost Basis Insurance is purchased on the portfolio to protect against these scenarios
  • Thorough due diligence
TCM RETC Tax Credit Impact

TCM and our partners are proud to provide individuals and companies with the opportunity to invest in tax credit funds that positively impact the environment and the communities they are in. We continue our vision to become the southeast’s most sought-after tax credit advisors, known for the distinct portfolio of opportunities that responsibly transform every community we touch.

This shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.

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Meet Lucas Boyd

Schedule a call with Lucas if you have any questions about Renewable Energy Tax Credits. 

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