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Product ID: 388571EAU
 
Credit & Course Provided by:

Planning for Renewable Incentives in 2011 and Beyond

OnDemand Webinar (82 minutes)

The grant in lieu of tax credits under section 1603 of the ARRA has been both a lifesaver and a game changer. However, section 1603 is likely to disappear after 2011 unless construction has begun on a project before then. This OnDemand Webinar will focus first on what is required to "begin construction" under section 1603, and will feature Victoria McDowell of the Treasury Department. Victoria McDowell will bring first-hand insights from 2010 when Treasury first confronted the "beginning construction" requirement, and will discuss new Treasury thinking about this requirement. In addition, the program will focus on what developers may face after 2011 and the lapse of the grant. What is the future of tax incentives for renewables in light of the controversy in Washington over budget cuts? Finally, the program will focus on the best strategies for monetizing tax benefits going forward. The sunset of section 1603 will place increased emphasis on optimizing the use of tax equity. Many developers have only a basic knowledge of the various tax equity structures that can be used with the investment and production tax credits. The program will discuss the basics of partnership flips; sale-leaseback transactions; leases with credit pass-through arrangements; prepayment structures; and "twinning" with other incentives.

Learning Objectives

You will be able to identify the requirements of the incentives for renewables.

You will be able to recognize the requirements for "beginning construction" for the 1603 grant.

You will be able to discuss what the future is likely to hold for tax incentives for renewables.

You will be able to review the structures used to monetize tax incentives for renewables.

Authors

Gregory F. Jenner, Stoel Rives LLP
Victoria I. McDowell, M.Ed., CGFM, U.S. Department of the Treasury

Agenda

Requirements for Current Incentives: PTC, ITC, 1603 and Bonus Depreciation

  • General Rules and Requirements
  • Meeting the 'Beginning Construction' Requirements

What Is Likely to Happen After 2011

  • Likely Disappearance of 1603
  • Extension of PTC and ITC?
  • Bonus Depreciation?

Planning for Monetizing Remaining Incentives

  • Partnership Flip
  • Leasing Structures
  • Use of Other Incentives