DAN MCRAE
Quick Takes
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September
2011-Quick Takes: "Section 1603 Grants" for Renewable Energy
Projects: Take the Money and Run!
A Section 1603 grant
will pay up to 30% of the cost of specified energy property in a
renewable energy project that produces electricity (biomass,
municipal solid waste, solar, wind, geothermal, marine, or
hydrokinetic). Not only that, in many cases it is possible to
"monetize" the grant, using "bridge bonds," and obtain funding
for construction, instead of waiting for the grant to be paid
after the project is placed in service. These proceeds can also
be used to leverage New Markets Tax Credits (NMTC) funding. Both
of these techniques can be used to reduce the amount of
developer equity needed for the project. But a variety of
requirements and deadlines are close at hand, so it is important
to act now! This issue of Quick Takes explains these and other
implications of this valuable program under the American
Recovery and Reinvestment Act of 2009 ("ARRA"). It also contains
a "Deadlines and Guidelines" section with important "how to"
information.
August
2011-Quick Takes: New Regs, New Rush- Finance Your Renewable
Energy and Solid Waste Disposal Projects Now!
Good news in the renewable energy and solid waste disposal
space! After almost 10 years, the IRS has finalized its
regulations on solid waste disposal bonds. This is hugely
significant if you have a renewable energy project, like biomass
to electricity, or a solid waste disposal project, like tire
recycling. This issue summarizes the significant changes, and
also provides a more detailed analysis. It also sounds a note of
urgency in proceeding with project finance deals. A this-year
deadline applies to using a "Section 1603 grant" as part of your
capital stack. Also, these new regulations mean more tax-exempt
solid waste disposal bonds will be issued, which means that
those who wait may suffer from diminished availability of the
necessary federal "volume cap".
June
2011-Easy
Equity- the NMTC and EB-5 programs
Companies that need capital for their projects, and communities
that want economic development or need to finance
infrastructure, should seriously consider whether funding from
two key programs work for them. The New Markets Tax Credits
("NMTC") program is a source of financing for projects from
domestic investors motivated in part by access to federal income
tax credits. The EB-5 program is a source of funding for
projects from immigrant investors motivated in part by access to
permanent residency in the United States. This issue of Quick
Takes explains how these programs work, gives the basic rules
for when a project qualifies for them, outlines how to access
them, and describes how the EB-5 Regional Center process works.
January
2011-Quick Takes: After ARRA- What Bonds Can We Use Now to
Finance Projects?
lists what programs have expired, including BABs, ED Bonds,
Facility Bonds, changes to BQ bonds, de minimis provisions for
bonds, certain AMT exemptions for private activity bonds (PABs),
the water and sewer PAB volume cap exemption, certain favorable
"small issue" manufacturing bond provisions, and treatment of
FHLB credit enhancement for bonds; covers extended/changed
programs including QZABs, QSCBs, QECBs, CREBs, a certain rebate
exemption for small governmental units related to construction
of public school facilities, bonds for private, for-profit
corporations to finance public school facilities under some
circumstances involving P3 agreements, and GO Zone Bonds;
discusses active financing techniques including "taxable
floaters", privately placed non-BQ bonds subject to AMT, project
finance, contract revenue bonds, and special district bonds like
TIF or TAD (tax allocation) bonds, as well as qualified
501(c)(3) bonds and traditional "small
issue" manufacturing bonds
June 2010-Quick
Takes: General Assembly Erodes the Conflicts Safe Harbor
June 2010-Quick Takes:
Assembly Erodes the Conflicts Safe Harbor
August
2009-Quick Takes: Deadlines and Guidelines for Recovery Bonds
June 2009-Quick Takes:
Just Out- New Rules That Will Supercharge Recovery Bonds
June
2009-Quick Takes: Stimulus Bonds- All About Recovery Bonds,
Cash Refunds, Tax Credits, and More
October
2008-Quick Takes: A Primer On PILOT Bonds
August
2008 - Quick Takes: Bridging The Money Gap: Tap TADs To Pay
Project Costs
May 2008 -
"Quick Takes: New Incentives for 2008, Mean a New Outlook for
2008"
February
2008 - "Quick Takes: TAD's- What To Do After the BeltLine Case"
November
2007 - "Credits/Schmedits!- How do I get incentives that mean
something?"
September 2007
- "The state of tax reform in Georgia- 'The Devil is in the
details'"
May 2006 -
"Writing An 'Accountable' MOU"
March 2006 - "No Equity? No Letter of Credit? No Problem!"
August 2005 - "Needed for Eminent Domain - Less Heat, More Light"
April 2005 - "Do's and Don't's for Directors
February 2005 - "After the Inducement Resolution: Now, How do I Get These Bonds Sold?"
September
2004 - "Quick Takes - The Ohio Case...Cuno v DaimlerChrysler"
May 2004 - "New Rules for Projects: The Good, The Bad, and The Needful"
February 2004 - "Incentives That Matter: Would You Like Freeport With That?"
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