Energy Tax Credit Transfers

Holland & Knight's Energy Tax Credit Transfers Team stands ready to assist clients in taking full advantage of the tax incentives provided for through the Inflation Reduction Act (IRA) and prior legislation, including the purchase and sale of tax credits under the newly enacted Internal Revenue Code (IRC) Section 6418. Our team has advised clients on energy tax credits for more than 20 years and, since tax credit transfer guidance was released in June 2022, has advised clients on over $1 billion of tax credit transfer transactions.

In-Depth Energy Tax Experience

Our team, including the firm's Renewable and Alternative Energy Tax Team, Project Finance Team and the broader Renewable Energy Team, have been working on energy tax credit transactions – including tax equity transactions – for decades, adding to their experience the requirements of the IRA after it was enacted in 2022. In addition, Holland & Knight attorneys were heavily involved in the enactment of numerous provisions of the IRA, as well as its implementation. During this time, we have provided guidance and advice to clients on every energy tax credit and on transfers of various credits, including investment tax credits and production tax credits. 

With years of experience in the full range of energy tax credits, Holland & Knight lawyers are distinctly positioned to advise clients on all aspects of energy tax credit transactions, including buying and selling tax credits under Section 6418. Our Energy Tax Credit Transfers Team has provided counsel to clients in developing form tax credit transfer agreements, drafting and negotiating tax credit transfer agreements and tax credit insurance policies for energy tax credit buyers and sellers, and on registering projects generating tax credits on the IRS online portal. Since the U.S. Department of the Treasury issued proposed regulations under Section 6418, our Energy Tax Credit Transfers Team has been involved in numerous energy tax credit transactions on both the buy and sell sides.

Although tax credit transfers are an emerging new market, the volume of transfer transactions with which we have been involved – and continue to handle – means that we stay current on market trends to assist buyers and sellers in negotiating commercially reasonable terms. Furthermore, our attorneys leverage their decades of experience in energy tax credits and in tax equity transactions to provide practical advice to sellers and buyers of tax credits. More specifically, for sellers, our team assists in positioning the tax credits to be highly attractive to buyers by helping sellers minimize risks and communicate to buyers the strength of their credits. For buyers, the experience of our team allows us to identify risks and provide practical advice to clients, many of which have limited experience with energy tax credits.

Tax Insurance Knowledge

Energy tax credit transfer transactions often include the use of tax credit insurance. The attorneys on Holland & Knight's Energy Tax Credit Transfers Team, including members of our Tax Insurance Policy Team, regularly represent clients in obtaining tax credit insurance on such transactions. We also represent insurers on underwriting tax insurance, including energy tax credit insurance and policies.

Tax Credit Diligence Background

Our Energy Tax Credit Transfers Team draws on the knowledge and experience of the firm's Energy & Natural Resources Industry Sector Group (ENR ISG) – which consists of more than 225 experienced attorneys and professionals who work on all facets of transactional, regulatory, legislative and litigation matters – to assist in due diligence required for energy tax credit transfer and sale transactions. We not only provide integrated service through the collaboration of attorneys across a broad range of practice areas, but our ENR ISG lawyers and professionals truly understand the industry and have a finger on the pulse of recent market trends, as well as insights on how to best navigate an increasingly complex regulatory environment.