Detailed Renewable Energy Tax Credit Services
Novogradac's Renewable Energy Tax Credit (RETC) practice services are based on comprehensive knowledge of and broad experience with the complex tax, accounting, business and transactional issues inherent in the financing and developing of renewable energy projects. Our renewable energy team is comprised of talented specialists trained to provide outstanding professional services to help clients navigate the challenges associated with developing a successful renewable energy project. Our project finance, tax and accounting professionals are dedicated to meeting each client's needs in a thorough, efficient and creative manner. The firm's work serving its clients in the renewable energy industry includes the following:
Tax Credit Transaction Structuring and Advisory
Novogradac works with clients to determine the appropriate transaction structure for their project. Depending on the investor, the market climate and a host of other factors, we typically advise clients on whether to go with a partnership flip, sale leaseback, invested lease or outright ownership transaction structure. Novogradac can prepare preliminary financial projections under multiple structures/scenarios to determine the optimal deal structure; the firm helps create financial projections which can be used by the project developer/sponsor to negotiating with potential tax credit equity investors. We can assist in presenting financial projections in a format that is easily understood by potential investors and in providing assistance in the resolution of tax and business issues encountered during the due diligence process. In addition, upon request, we can provide transaction support services including the management of the closing checklist process, interacting with the various transaction participants and participation in conference calls with various parties to the transaction.
Financial Projection Preparation/Project Finance Support
Novogradac can prepare preliminary financial projections for clients in a project finance support role. Clients receive not only the benefit of our finance, tax, and accounting expertise, they also get the benefit of the market knowledge we developed as experts in the industry. Preparation of a financial projection allows the project developer to assess the financial viability of a proposed transaction. In addition, a complete set of financial projections allows the parties to the transaction to proactively identify and address critical structuring and deal issues. Perhaps most importantly, the financial projections can be used by the project developer/sponsor to effectively negotiate with potential tax credit equity investors. Novogradac assists client by compiling information into financial projection models that include sources and uses of cash, net operating income, taxable income, investor and developer internal rate of return schedules (summary of tax benefits etc.), capital account analysis, a list of inputs and significant assumptions in addition to other schedules. As required, we issue compilation reports, in accordance with attestation standards established by the American Institute of Certified Public Accountants.
Novogradac provides project finance support to clients to help them proactively resolve issues and strengthens and optimizes the financial projection to reflect the current marketplace. The result is that clients get the maximum benefit from these transactions.
In addition, we can analyze financial projections prepared by others on behalf of our clients. We can make comments and suggestions on a consulting basis in connection with the reasonableness of the inputs and assumptions used, the transaction structure employed and various tax and business issues.
General Consulting Services
Novogradac professionals have extensive transaction experience in the renewable energy industry, in addition to a comprehensive knowledge of complex tax, accounting and business issues inherent in financing and developing renewable energy projects. Our renewable energy team committed to staying abreast of the latest developments, industry trends and rules and regulations. As such we consult with clients on a variety of issues.
Financial Statement Audits
Novogradac can audit the annual financial statements of applicable project level entities, fund level entities or other entities of the developer/sponsor as requested. Audits enable us to express an opinion on whether the financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles (GAAP).
Tax Return Preparation
Novogradac's renewable energy team can prepare federal and state income tax returns. Novogradac professionals have extensive experience with complex tax, accounting, business and transactional issues inherent in financing and developing renewable energy projects. Because of our significant experience, clients are confident the tax returns will not only be skillfully prepared but will also be prepared consistent with, and reflective of, the underlying transaction.
Novogradac's valuation advisory services serve project developers and investors across various project types, including solar, wind, biomass, fuel cell and other emerging renewable energy technologies. Novogradac can prepare fair market valuations for solar, wind, biomass, fuel cell and other renewable projects in connection with a client's debt, sponsor and tax equity financing of their projects. Clients, lenders, investors and their advisors rely on our valuation reports for a number of critical tax and business reasons. The valuations are also commonly used by investors and other owners contemplating their exit from a deal. Valuations at differing points in the development process are also prepared with values as of the notice to proceed (NTP), the commercial operation date (COD), the placed-in-service date, the completion date or some other future date. The valuations typically rely on both the cost comparison and the income approaches to value.
Novogradac can provide on-site training for your in-house project finance, tax and accounting teams. We can work with the appropriate members of your team to discuss and present on a variety of topics. Typically we will tailor this training to focus on the subject area of your choosing based on discussions with you.