Renewable Energy Financing Structures: Partnership or Lease?

Date: Thursday, December 10, 2009
Time: 12:30 PM - 2:00 PM ET

Long-term financings of renewable energy projects, including especially wind and solar, are closing with increasing frequency now that financial markets have improved and the Treasury Department is issuing cash stimulus grants. As a result of changes enacted by the American Recovery and Reinvestment Act of 2009, wind projects can now be financed using a lease structure, rather than the partnership structures required under prior law. Meanwhile, solar energy financings continue to be arranged using lease structures, despite the capability developers have under a partnership structure of buying back the facility later in its life at a lower cost. Some investors in renewable energy projects have decided to choose one type of structure over another, while others advise their customers that either type is acceptable. Many of the presentations that have been given addressing choice of structure conclude that either type is viable, but the prevailing message is that transaction parties need to undertake a fact-specific analysis for each case. To complicate matters further, no one decision metric or procedure has emerged to determine which structure is preferable for a particular transaction, and the accounting, tax and economic analysis that is required for the analysis is highly complex. Many of the issues affect investors and developers differently.

Presentation Objectives
The objectives of this 90 minute audio discussion include providing participants with a conceptual understanding and practical application of the following:

Generic lease and partnership structures suitable for renewable energy financings, particularly wind and solar photovoltaic;
Tax benefits and cash grants available for such financings;
The key legal, tax, accounting and economic issues affecting the choice of structure;
How to compare the economic yields and present values for each structure;
Discussion of tax issues pertaining to economic substance, section 704(b) substantiality and true lease characterization; and
Comparison of lease to partnership financial accounting, including likely changes in accounting treatments.

Upon completion of this program, participants will be able to understand:

The differences between generic lease and partnership structures for renewable energy financings;
The benefits of project debt financing;
The tax, accounting and economic treatments of two sample transactions involving wind and solar photovoltaic energy; and
What further analyses may be required to resolve the principal issues for particular transactions.

Register quickly and easily online to secure your space now. Or, please call 1-800-372-1033 option 6, then option 1, and refer to the date and title of the audioconference. Lines are open Monday through Friday from 8:30 a.m. to 7:00 p.m. ET, excluding most federal holidays.

Don't miss this opportunity to hear a lively, dynamic presentation. Not only are audioconferences an excellent way for you to stay current, with BNA you also get:

Quality. Count on it. Nothing is canned.
Objectivity. BNA Tax Management provides you with the best and most objective information.
Affordability. BNA Tax Management audioconferences are inexpensive when compared to the cost of travel to attend conferences with leading experts and practitioners. Plus, you may use a speakerphone and invite as many of your colleagues as you want to listen in -- all for the price of a single registration. See pricing for more details.
Convenience. No airlines. No travel. No time out of the office.

In addition, you'll receive:

Personal attention. Once you've registered, send your e-mail questions in advance to mcarrington@bna.com and they will be included in the program. You'll also have a chance to e-mail your questions during the audioconference.
Conference materials. We’ll e-mail links to the materials that will accompany the audioconference one day in advance. If you do not receive this pre-conference e-mail, e-mail mcarrington@bna.com.

Prerequisite: None
Level: Update
Delivery Method: Live
Recommended CPE Credit: 1 credit

If you would like to apply for CPE credits, please make sure to provide your contact information when you register, complete the post-conference evaluation form, note that you want to apply for CPE credits, and attend the audioconference from start to finish. Learn more about BNA's NASBA Registration

Cancellation policy
To cancel your registration for this event, you must contact Customer Service (1-800-372-1033, option 6, Monday through Friday, 8:30 a.m.-7:00 p.m. ET excluding most federal holidays) no later than 24 hours prior to the scheduled start of the audioconference. You will receive a CD of the audioconference or a credit valid for one year. Your credit may be applied toward the purchase of any BNA product or audioconference.

Refund Policy
If for any reason you are not completely satisfied with this program, we will provide a full refund — no questions asked!