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Renewable Energy

In 2006 Novogradac launched its Renewable Energy Tax Credit (RETC) practice in response to demand from institutional tax credit investors looking to diversify their tax credit investment portfolios with financially viable and environmentally responsible investments. Soon after, Novogradac served some of the earliest movers in the solar energy market, who recognized our value as experts in tax-credit-financed investments. As a long-established service provider to tax credit developers and investors, Novogradac quickly established itself as an expert and leader in the renewable energy industry through its  comprehensive understanding of the underlying tax, accounting and structuring issues involved in financing successful renewable energy transactions. In our role as trusted business advisors, we provide our clients with services based on innovative thinking, industry expertise, entrepreneurial acumen and superior client service. Novogradac's work in the renewable energy industry is focused on projects financed with the investment tax credit (ITC) (primarily solar and fuel cell facilities) and the production tax credit (PTC) (primarily wind and biomass facilities), for which we provide project finance, tax equity transaction advisory, tax, accounting and auditing services to renewable energy developers (sponsors) and investors. As a firm, we have assisted with hundreds of RETC transactions and have been involved in more than $10 billion in tax credit financings.

Novogradac has a team of professionals focused on the renewable energy industry and dedicated to providing outstanding professional services. The firm's professionals have a thorough understanding of how tax-credit-financed transactions work. This knowledge and experience allows us to advise and guide various types of clients, including project developers, tax equity investors, private equity interests and lenders through these complex transactions. Our ability to meet clients' needs in a thorough, efficient and creative manner sets us apart and helps our clients efficiently optimize the monetization of the tax benefits derived from tax credit financed renewable energy projects.

In addition to traditional audit, tax and consulting services, Novogradac's work in the renewable energy industry also includes assisting project developers (sponsors), tax equity investors, private equity investors, lenders and other transaction participants with various aspects of project finance and tax equity transaction advice. Common services provided include:

Project Finance/Transaction Advisory

  • Transaction structure advisory
  • Financial projection preparation and compilation services
  • Project finance support/advisory
  • Evaluation of tax equity investor term sheets
  • Construction and permanent debt advisory
  • Back-levered debt advisory/sponsor interest monetization
  • State rebate/renewable energy certificate (REC) contract analysis and advisory
  • Tax equity investor introductions
  • Transaction support services
  • Production tax credit "begun construction" safe harbor advisory services
  • General consulting

Tax Equity Investor Services

  • Evaluation of financial projections from investor perspective
  • Evaluation of investor GAAP earnings profile
  • Hypothetical liquidation at book value (HLBV) analysis
  • Calculation of noncontrolling interest-sponsor/developer
  • Investor internal rate of return (IRR) analysis
  • Investor return on investment (ROI) analysis
  • Call option pricing analysis
  • Asset management support schedules
  • Relationship liaison for transaction participants
  • Specialized professional development training services
  • Due diligence services

Accounting and Tax Services

  • Financial statement audits
  • Tax return preparation
  • Project cost certification audits/cost segregation reports
  • Financial projections–accountants' compilation report
  • Valuation (appraisal) reports/value letters
  • Production tax credit safe harbor accountants' reports

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