Tax Credits for Sale: Opportunities for Financing Renewable Energy and Carbon Reduction Projects Under the Inflation Reduction Act
The Inflation Reduction Act gives taxpayers two options for monetizing the Internal Revenue Code's energy-related tax credits—a "direct pay" election and the ability to sell credits to third parties for cash. These options will give developers more flexibility to finance renewable energy and carbon reduction projects and may reduce or eliminate the need for these projects to rely on traditional tax equity.
In this White Paper, we consider structuring opportunities in light of these changes.
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