Overview
Join Partner Seth Doughty at Infocast’s Texas Clean Energy Summit on September 25 as he moderates the panel, “Understanding Tax Equity & Transfer Deals.”
In addition to opening up tax credits to new buyers, transferability has also changed the traditional tax equity (TE) market with the rise of t-flips and other hybrid TE structures. Developers and other stakeholders must understand the new contract structures, the needs and concerns of tax credit buyers, the role of insurance, what negotiations look like, how transfer provisions are written into contracts, who’s buying and selling, and broadly – how are deals getting done and how long is it taking?
- Pricing: Has the market settled? Do credit sale provisions impact the cost of capital/debt, 3rd party financing? Do the returns look different?
- Are credit sales adding new liquidity into the TE markets, and how is this burgeoning market shaping up? How many deals have closed, and what do they look like?
- What are the parameters for t-flips, and how are traditional TE investors assessing the new provisions and flexibility? Is it changing their overall TE appetites?
- Will credit sales reduce the underwriting required for TE deals? Is this a good/bad thing? What are the limits to monetizing attributes?
- TE interest rates increased significantly more than high-quality bond interest rates: will this incentivize the development of credit sales? How do buyers approach valuations and get credit support? Is buyer creditworthiness a driver for price?