1-Hour Program

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Although certainly tested by the economic effects of the COVID-19 pandemic and the impact of the associated production/supply chain issues, renewable energy investment has remained vibrant in 2020.  One key reason for its resilience is the existence of government-backed tax incentives, in the forms of Investment Tax Credits (ITC) and Production Tax Credits (PTC).  ITCs, generally used for solar projects, allow taxpayers to deduct a percentage of the cost of installing a solar energy system from their federal taxes. PTCs, on the other hand, are more frequently associated with renewable energy wind projects. PTCs are a per-kilowatt-hour (kWh) tax credit based on the amount of electricity generated and sold by qualified energy projects.  As one would assume, eligibility for ITC and PTC tax credits is dependent on compliance with several technical requirements.  If a project fails to comply with these requirements, the project will not be entitled to the anticipated tax credits and any previously claimed tax credits may be “recaptured.”

One way to deal with the uncertainty surrounding compliance with these requirements is Tax Credit Insurance.  Tax Credit Insurance is designed to provide assurance for taxpayers relating to a renewable energy project’s ITCs or PTCs and reduce or eliminate the adverse financial impact associated with an Internal Revenue Service (IRS) challenge to the project’s eligibility for, or recapture of, these tax credits.

Joseph Ehrlich and Jackson Bender, National Practice Leaders with Beecher Carlson Insurance Services, LLC and Justin Pierce Berutich, Head of Tax at Euclid Transactional, LLC will provide:

•             An overview of Internal Revenue Code (IRC) Section 48 investment tax credits (ITC) and Section 45 production tax credits (PTC) for certain energy-related investments; (10 minutes)

•             Discuss the eligibility requirements for ITCs and PTCs; (10 minutes)

•             Identify issues relating to ITC and PTC eligibility, including structural, qualification, and recapture risk; (15 minutes)

•             Discuss the benefits of ITC and PTC Tax Credit Insurance; and (10 minutes)

•             Explore the underwriting process for the placement of ITC and PTC Tax Credit Insurance.  (15 minutes)



Program Level:  Update

Intended Audience:  Outside attorneys, in-house counsel, insurance professionals, tax and financial advisors, accounting professionals, investment bankers, investors, tax equity investors, lenders, solar/wind project developers and sponsors

Prerequisites:  None

Advanced Preparation:  None





Credit Details

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