Conservation Easements
Preserving open spaces through private conservation for a cleaner, healthier environment
Habitat | Wilderness |Fresh Water | Clean Air | Farming | Public Parks | Recreation | Providing for Future Generations
R&D Tax Credits
Government credits to incentivize all types of innovation
R&D Tax Credits
Government credits to incentivize all types of innovation
Alternative Wealth Management
Private Offerings Access
Solar Investment Tax Credits
Govenment incentives for clean energy development
Today, renewables make up 17% of US capacity, but are expected to make up 25% in 2025 and 64% in 2050
$5-10 Trillion of capital is required to meet future projections for renewable energy capacity needs
37 states have current mandates or goals to increase sustainable renewable power generation
Data provided by
US Energy Information Administration, Bloomberg NEF
Clean Energy Investment Tax Credits
The Inflation Reduction Act provided a 30% tax credit for qualifying investments in renewable energy projects through the end of 2032. The amount of the credit is determined as a percentage of the taxpayer’s basis in eligible property.
Developers of solar projects often provide opportunities for investors to enter partnerships to receive tax credits, depreciation and other benefits such as income.
Zero Leverage Example:
Solar Development Cost $10,000,000
Solar Tax Credit 30%
Economic Incentive $ 3,000,000
60% Leverage Example:
Equity $ 4,000,000
Debt $ 6,000,000
Solar Development Cost $10,000,000
Economic Incentive $ 3,000,000
% of Invested Equity 75%
Credit per $100,000 invested $75.000
Tax Credits are one of the most powerful tax incentives available as they reflect not a deduction, but a dollar per dollar payment of tax liabilities owed.
Investors in solar development partnerships may have other significant benefits in addition to tax credits such as allocation of depreciation and income from power purchase agreements.
Bonus Depreciation allows for the deduction of certain asset costs in the year the property is placed in service. In 2024, the maximum amount of Bonus Depreciation was 60%. Without changes in legislation, this amount decreases over time, with the maximum amount falling to 40% in 2025, 20% in 2026 and 0% begining in 2027.
HYPOTHETICAL ILLUSTRATION
This illustration is for hypothetical purposes only and does not represent an actual program or offering for investment.
Assumptions include $100,000 investment in a solar development. In this scenario, the solar program generated $154,133 of accelerated depreciation, as well as $80,000 of tax credits in just the first year. The investor received additional depreciation over the course of years 2-6. This reflects the significant potential tax benefits.
This hypothetical also assumes a modest preferred return and exit proceeds, which when combined with the tax savings value of the depreciation and tax credits, creates an $86,707 return on investment. However, because the investor goes below their capital account value, approximately $34,398 would be lost to recapture tax.
The net return on investment after accounting for the original investment proceeds and recapture tax is $52,309 or a 52.3% ROI. Because the cash flow comes significantly in the first year, the Internal Rate of Return is even higher at 58%.
If the investor does not qualify as a Material Participant in the ownership of the property, then tax benefits described would only have the ability to offset passive income or gains. Investors must be material participants in order to offset ordinary and other types of active income.