FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 2 Process/Financing Issues PROJECT FINANCE ISSUES UNIQUE TO WORKING WITH.

Slides:

Advertisements

Similar presentations

Financial Leverage and Financing Alternatives

Advertisements

Special Issues for Projects Involving Nonprofits IPED Housing Tax Credits 101 February 22-23, 2007 Molly R. Bryson Thomas A. Giblin.

PRODUCTION TAX CREDIT BASICS

Michael J. Goldman, Esq. Donald Nimey, CFA, FRM Daniel J. Smith, CPA.

How Credits Become Capital: When and How to Syndicate Incentives for Historic Preservation in Detroit Thursday, June 5, 2008 The Detroit Athletic Club.

USING THE PRODUCTION TAX CREDIT James F. Duffy, Esquire Nixon Peabody LLP 100 Summer Street Boston, MA (617) (866) (fax)

Historic Tax Credit Equity Syndication Basics Historic Tax Credit Developers Conference Thursday, February 5, 2009 Miami Beach, Florida.

Turning Your Tax Credits into Cash Iped Tax Credits 101, October 16, 2008 Presenter: Gayle Manganello Ellis, PNC MultiFamily Capital.

ACQUISITION/REHABILITATION: THE 50% ANTI-CHURNING RULE

Understanding the Economics and Running the Numbers Why is it important to prepare a financial model? Who are the users of the financial model? When does.

Syndication Leasing Structures How Tax Credits Become Capital: When and How to Syndicate Panel USING HISTORIC TAX CREDITS IN NEW YORK June 24, 2009.

Introduction to PPP in the EU RCC PPP Conference, Sarajevo, 25 September 2009 Michael Burnett, Director, European PPP Forum, European Institute of Public.

Tax Credits Vs. Cash Grants In Renewable Energy Deals Speakers Anita Molino – Bostonia Partners LLC Tony Grappone – Novogradac & Company LLP Moderator.

AN OVERVIEW OF PROJECT FINANCE IN PRIVATE-PUBLIC PARTNERSHIPS FINANCE 101 T ERRI S MALINSKY Managing Director B.C.

Restricted © Siemens AG 2013 All rights reserved.Answers for infrastructure and cities. “Shaking the Money Tree” Session B: Finance and Affordability Maryland.

Risk and Return, Business Structures By R. S. Miolla.

Tiger Leasing Leasing As A Closing Tool. What is a Lease? A lease is simply an agreement by a customer (Lessee) to pay a monthly rent for a specific amount.

NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy operated by the Alliance for Sustainable.

A Member of Erste Bank-Group and Sparkassen Real Estate Leasing in Romania Harald Trinkl / Vasile Cristescu Bucharest, October 19th, 2006 National Leasing.

FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 1 Seth D. Kirshenberg, September 16, 2014 Utilizing ESPC to Develop Renewable.

© 2013 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is the property of Barnes & Thornburg LLP which may not be reproduced,

CHAPTER TWELVE FINANCIAL LEVERAGE AND FINANCING ALTERNATIVES.

Forming The Start Up Venture Which Structure is Right for You? Gregory W. Gribben, Esq. Woods Oviatt Gilman LLP October 9, 2012.

Silver Fox Advisors Financial Resources Silver Fox Advisors Lunch & Learn Program Thursday, January 22, 2009 Financial Resources

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER15CHAPTER15 CHAPTER15CHAPTER15 Financing Corporate Real Estate.

If someone could tell you how to save thousands of dollars in taxes would you listen? Yes? Answer the following 3 questions…

MODULE 10 Basic Premises w Risk/Return analysis is critical to establish project feasibility w Financial and ownership structures affect participants’

DOE OFFICE OF INDIAN ENERGY Key Project Development and Financing Concepts 1.

 Fifth Third Bank | All Rights Reserved Vessel Financing Choices for Ferry Operators.

Leasing Chapter 27 McGraw-Hill/Irwin

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Steven P Janes Sherrards Solicitors London UK CASE STUDIES:

Financial Solutions for Growth… Equipment Financing.

Advice from CPAs Ten Ways To Protect Your Business.

Saving With Solar: LESSONS FROM THE MORRIS HYBRID Power Purchase Agreements MODEL April 18, 2013 ASES ANNUAL CONFERENCE BALTIMORE, MARYLAND.

The Low Income Housing Tax Credit Program

26-0 Lease Terminology Lease – contractual agreement for use of an asset in return for a series of payments Lessee – user of an asset; makes payments Lessor.

© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved McGraw-Hill/Irwin Slide 1 CHAPTER TWELVE FINANCIAL LEVERAGE AND FINANCING ALTERNATIVES.

Iowa Wind Entrepreneurship Workshop Steps in Organizing, Utility Agreements, and Financing October 21, 2005 Iowa Community Entrepreneurship Academy Manning.

TASHKENT INTERNATIONAL LEASING FORUM April,

Source of finance All businesses need money to finance business activity. This can be for the initial setting up of the business, for its day-to-day running.

American Model. Public-Private Partnerships Public Development Private Development Public-Private Partnerships PrivatizationSubsidization.

Frank Smith President Sologen Systems LLC. The Subsidies 30% Income Tax Credit or Cash Grant 30% Depreciation (5-year MACRS) $3.00 CPSE Rebate (per dc.

How Credits Become Capital: When and How to Syndication Incentives for Historic Preservation in Seattle Conference Thursday, July 12 Seattle, WA.

Peck, Shaffer & Williams LLP 1 Local Government Leasing Georgeann Becker January 30, 2009.

Chapter 21 – Lease Analysis -- Terms u Lessee u The person using the asset u Lessor. u The person who owns the asset.

Equipment, Facilities, Capital Improvements & Other Property.

ANATOMY OF A DEAL: FINANCING Peter Y. Flynn, Bostonia Partners.

Leasing. Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax.

Key Tenets to the Public Asset Monetization Purchase Keep the Public Assets (“System”) in Public Hands Deliver meaningful Upfront Proceeds to the unit(s)

Yachting in Malta: A Fiscal Perspective Pierre Portelli 11 June 2015.

Leasing Chapter 26. Lease terms Lease Lessee Part taking the lease Lessor The owner that is giving the lease.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-1 Understanding Cash Flow Analysis.

Project On Lease Financing.  A lease is a rental agreement that extends for one year or longer.  The owner of the asset (the lessor) grants exclusive.

Overview of the Housing Tax Credit Program 2015 Nebraska NAHRO Conference.

Chapter 24 - Term Loans and Leases  2005, Pearson Prentice Hall.

Historic Preservation Tax Credits The Next Level: “Master Tenant” Syndication.

Lease Accounting. Lease Players Leasing – renting an asset from a third party consistently for “the right to use” the property. Lessor – owner of the.

Winston & Strawn LLP © 2009 CHARLOTTE CHICAGO GENEVA HONG KONG LONDON LOS ANGELES MOSCOW NEW YORK NEWARK PARIS SAN FRANCISCO WASHINGTON, D.C. Renewable.

Leases and Off-Balance Sheet Debt 11 CHAPTER. Leases Lease – contractual agreement between a lessor (owner) and a lessee (user or renter) that gives the.

ACC 422 Week 5 DQ 1 To purchase this material click 422/ACC-422-Week-5-DQ-1 What are the differences between a direct-financing.

Legal Issues Impacting Nonprofit Properties Financed with LIHTCs

Energy Financing Company, LLC Entity Characteristics

ACQUISITION/REHABILITATION: THE 10% ANTI-CHURNING RULE

Lease Accounting 22.2 LO2 Financial leases are essentially treated as debt financing Present value of lease payments must be included on the statement.

Multifamily Partnership Opportunities Annual Conference of the

Seller considerations

State Tax Credits – Brief Overview

HFC Public-Private Partnership Basics

Hybrid and Derivative Securities

Presentation transcript:

FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 2 Process/Financing Issues PROJECT FINANCE ISSUES UNIQUE TO WORKING WITH USG: Developer creates special purpose entity (SPE) SPE responds to USG request for proposal (RFP) with respect to power purchase agreement (PPA) and land lease USG awards land lease and PPA pursuant to competitive bids Key underwriting hurdles include the following –Project level debt ( Stand still provisions, Termination for convenience, etc.) Basic Partnership Flip Structure Basic Lease Pass-Through Structure Sale Leaseback Structure

FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 3 Basic Partnership Flip Structure Project Sponsor Limited Partner (Tax Equity Investor) SPE OpCo (Owns and operates facility) EPC Developer Power Buyer (USG) Partnerships for federal income tax purposes Tax paying entities Denotes an ownership interest Cash flows from non-owners Ground Lessor (USG)

FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 4 Basic Lease Pass-Through Structure Developer Project Sponsor Limited Partner (Tax Equity Investor) SPE “OwnCo” “Depreciation Entity” SPE “OpCo” “Tax Credit Entity” Partnerships for federal income tax purposes Tax paying entities Denotes an ownership interest Cash flows from non-owners Power Buyer (USG) Ground Lessor (USG)

FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 5 Sale Leaseback Structure Investor SPE - Single Member LLC (Lessee ) Single Member LLC (Lessor) SPE OpCo SPE OpCo $ Lease Agreement Lease Payments Ground Lessor and Power Buyer (USG) Power PPA/Lease Payments Lease Agreement Project Sponsor $ 100% interest Constructed Project Purchase & Sale Agreement

FIFTH ANNUAL FEDERAL ENERGY WORKSHOP & DEFENSE ENERGY PARTNERSHIP FORUM | PAGE 6 Contact Information Tony Grappone Novogradac & Company LLP 101 Arch Street, 10 th Floor Boston, MA Tel: Fax: