As a full-service investor, syndicator, and developer, our team brings more to the table than most syndication firms. We have the unique experience of working on almost every side of the equation in the tax credit syndication and development process, including providing legal counsel to developers and investors. Gardner Capital Solar’s specialty is in navigating the intricate investment tax credit process required for solar investments.
Our team manages the process for investors by:
- Reducing transaction costs for tax equity placement
- Providing stability and execution in uncertain economic and political environments
- Reducing risk through due diligence and underwriting
The Value of Solar Investments
Solar tax credit incentives recue the project’s taxable income in the first five years of operation, which increases your after-tax earnings on the project. This is where the tax equity investor benefits. Since the solar project does not generate enough taxable income by itself, the real value of solar tax credits is to reduce your taxable income on other high-earning projects.
Federal Incentives for Solar Energy
- 30% Investment Tax Credit, scheduled to expire at the end of 2016. Rate is likely to return to the pre-2005 rate of 10%
- 5-year Modified Accelerated Cost Recovery Systems (MACRS)
- Depreciation for all Eligible Solar Equipment
Solar investments are ideal for private and institutional investors (especially insurance companies) who are seeking:
- A long-term investment strategy
- A long-term partnership with a solid company
- A reduction of federal income tax
- Conservatively structured solar acquisition or development deals that hold minimal debt
- Assurances of compliance and due diligence on every deal
- Quick and efficient closings
- Risk mitigation
- Equity in the growing renewable energy sector