Report: Utility Solar Tax Manual (2012)
Electric Power Association (SEPA) released a third update to its Utility
Solar Tax Manual, a comprehensive legal and financial guide to federal
incentive programs. Major updates to the report include sections on:
- the investment tax credit
- treasury cash grants
depreciation, manufacturer credit
special tax issues
and other tax nuances
Since the last
update, the US Treasury has paid more than $10 billion in cash grants as an
alternative to claiming a 30 percent investment tax credit, which will wind
down in 2012. Congress also enacted a 100 percent "depreciation
bonus" in late 2010, which decreases to a 50 percent level in 2012.
The tax equity market for converting tax benefits on renewable energy projects
into current cash reached the same volume of transactions in 2011 as in 2007
before the market collapsed, and two new structures -- inverted leases and
fixed-flip partnerships -- appeared and have seen increasing use in the solar
tax equity market.
The Tax Manual is free for SEPA members.