“The relevant rules are highly technical, and this often means that investors, users, and developers – as well as less-specialized professionals – typically depend on the structuring advice of experts who often assume the ‘typical’ business deal and then provide general guidance …. [Tax-break recipients] may … fail to attend to important aspects, leaving money on the table or putting their ventures at the risk of IRS attacks.”
– EUCI, “In-Depth Tax Planning for Renewable Energy Projects,” June 9–10 Conference Description.
The energy industry conference group EUCI is hosting a two-day event next month in San Diego, “In-Depth Tax Planning for Renewable Energy Projects.” The complex topic with specially designed software and technical experts is advertised as follows:
Maximizing the benefits of tax incentives is vital in any renewable energy transaction, and whether a project “pencils out” generally turns on the efficient use of these incentives. How soon investors can get their desired return and exit the project, and how much a project developer receives and when, depend greatly on how the tax incentives are handled.
Six “learning outcomes” are listed:
The full course description is provided in Appendix A below.
Tax Farming: States Too
Wind farming is tax farming as the two-day seminar will no doubt document. And this is only federal. Another seminar would be needed to cover the complexities of non-federal tax favors such as those listed in the Database of State Incentives for Renewables & Efficiency (DSIRE).
Consider Georgia. Being a Southern agriculture state, it is hard to resist calling its renewable energy subsidies watermelons—green on the outside and red on the inside.
In this Republican state, DSIRE gives a long list of subsidies available to residential and commercial energy users. Particularly attractive are tax credits for solar energy and alternative-fueled vehicles, which (thankfully) are capped at $5 million per year per category.
In addition, Georgia gave a $6.2 million grant to Range Fuels for cellulosic ethanol (bankrupt: 2011) and $10,000 grants to filling stations for dedicating one pump for E-85 for three years.
Add to the list the fact that Georgia’s Public Service Commission’s support for EPA’s Proposed CO2 Rule for New Power Plants that would stop future coal-plant construction and force closure of existing coal-fired power plants. And finally, Georgia joined Common Core for k-12 education whose science portions have been corrupted by climate change propaganda.
This list makes a case that Georgia supports the Obama Administration’s efforts to replace consumer-driven fossil fuels with expensive, unreliable renewable energy sources. Georgia voters should be vigilant to avoid casting votes for politicians supporting President Obama’s energy policies.
Appendix: Full Course Description
Here is the overview of the upcoming course,Tax Planning for Renewable Energy Projects, An In-Depth Course.
Maximizing the benefits of tax incentives is vital in any renewable energy transaction, and whether a project “pencils out” generally turns on the efficient use of these incentives. How soon investors can get their desired return and exit the project and how much a project developer receives and when depend greatly on how the tax incentives are handled.
Of course, the relevant rules are highly technical, and this often means that investors, users, and developers – as well as less-specialized professionals – typically depend on the structuring advice of experts who often assume the “typical” business deal and then provide general guidance about deal structures, using jargon and arcane tax references. Worse, some investors, users, developers, and their advisers may “go it alone” and fail to attend to important aspects, leaving money on the table or putting their ventures at the risk of IRS attacks.
This course is designed to give investors, users, developers, and their advisers an in-depth understanding of the tax issues involved in the development and structure of renewable energy projects. The discussion will first focus on the various incentives available for renewables and then move to an in-depth discussion of the basic and more advanced tax and accounting rules for partnerships and leasing structures. We will then shift the focus to real-life case studies, using economic models designed specifically for renewable energy projects. Throughout, we’ll provide definitions, references to the terms we use, and lots of examples. Finally, we will have a roundtable discussion with experienced renewable developers.
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James H. Rust, Professor of nuclear engineering and policy advisor The Heartland Institute.