Upfront Capital available for US Treasury ITC (investment tax credits)
Tax credits are allowable up to 60% of the project sale price. (See how below)
Normally project developers get the tax credit when delivering the product project, however, we will monetize upfront 65-85% depending on the investor; the upfront capital can be in cash or equity.
How ITC Tax Credits work
https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses
How additional Tax Credits work
Additional cumulative bonus tax credits above 30% are potentially available if the following are met:
10% is added to the PTC or ITC for projects in certain “energy communities”, which includes brownfield sites, areas that meet employment percentages in the coal, oil or natural gas industries, and areas where a coal mine or coal powered electrical plant has closed down.
20% is added to the ITC for solar wind projects located in select low-income communities, low-income residential buildings, or American Indian owned land.
The Rural Energy for America Program (REAP) also provides financial assistance for solar energy in rural communities. The USDA REAP grant program was allocated $2 billion until 2031 to provide grants and loan guarantees to rural small businesses including farmers and ranchers. The Federal commercial solar panel cost share for grants under REAP was raised from 25% to 50%.
How much is the PTC (Premium) tax credit? https://www.epa.gov/lmop/renewable-electricity-production-tax-credit-information
For facilities placed in service after December 31, 2021, the PTC provides a corporate tax credit of up to 1.5 cents/kWh for electricity generated from landfill gas (LFG), open-loop biomass, municipal solid waste resources, and small irrigation power facilities, or up to 2.75 cents/kWh for electricity generated from wind, closed loop bio-mass and geothermal.
https://www.epa.gov/lmop/renewable-electricity-production-tax-credit-information