Investment Tax Credits
We offer simple, streamlined access to federal Renewable Energy Investment Tax Credits (ITCs) through direct transfers or tax equity investments in qualifying renewable energy projects. Our ITCs provide attractive economic returns with very low risk.
Key Benefits:
- ITCs may be transferred directly from the project or allocated through a traditional tax equity structure
- Credits provide attractive economic returns with very low risk
- Unused credits may be carried forward 22 years or carried back 3 years
Transferred Credits
The Inflation Reduction Act allows projects to transfer credits directly to third-party transferees without utilizing a traditional tax equity investment structure. This provides immediate return of capital and benefit. Transferees may improve their IRR by reducing quarterly estimated tax payments in the year the credits are delivered.
Tax Equity Investments
Tax equity investors receive depreciation and cash flow, with an expected 9% ROI on ITC tax equity investments.
- Capital Contributions: Investor capital is contributed 25% at closing and 75% when the project is placed in service.
- Tax Credits: ITCs are earned 100% when the project is placed in service.
- Depreciation: Investors receive depreciation equal to the Fund’s equity contribution less 50% of the tax credit amount.
At Twain Financial Partners, we provide comprehensive services to support your investment, ensuring that you can focus on the benefits while we handle the complexities. Our services include:
Sourcing, Underwriting, Structuring, and Closing:
- Our investment committee vets each deal through rigorous underwriting.
- Our tax counsel ensures compliance with federal guidelines.
- We handle project-level negotiations and closings.
Asset Management: We conduct ongoing reviews of project costs, quarterly compliance, and performance evaluations.
Accounting and Cash Management: We manage cash movement, accounting, and tax reporting.
