On April 4, 2023, the Department of Treasury (the “Treasury”) and the Internal Revenue Service (the “IRS”) released Notice 2023-29 (the “Notice”) providing a high-level overview of the rules they intend to include in forthcoming proposed regulations (the “Proposed Regulations”) for determining (i) what constitutes an “energy community” under Section 45(b)(11)(B) of the Code (and adopted by Sections 45Y(g)(7), 48(a)(14) and 48E(a)(3)(A) of the Code), and (ii) whether a qualified facility, energy project or energy storage technology (a “Facility”) is located in an energy community.  Th ..read more

Note: Darin Lowder and Sunita Paknikar discussed this article on a recent episode of the Powered by Foley podcast. Click here to listen. Construction financing is used to fund the construction of renewable projects prior to such projects obtaining long-term financing. Because construction loans are disbursed during a high-risk phase of a project, these loans carry different terms, pricing and conditions than subsequent longer term financing facilities. Negotiating construction loan agreement terms and provisions are therefore crucial in mitigating risk from both a Lender’s and a Borrower ..read more

The Internal Revenue Service (IRS) recently released guidance1 regarding the changes to the Plug-In Electric Drive Vehicle Credit (EV Credit) under Section 30D2 of the Internal Revenue Code (Code), which was most recently amended under the Inflation Reduction Act of 2022 (IRA). The EV Credit itself is not new; it was originally enacted in the Energy Improvement and Extension Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009. In that historical incarnation, the EV Credit was available for plug-in electric vehicles at a rate of up to $7,500 per vehicle, but ..read more

The passage of the Inflation Reduction Act (IRA) in August of last year saw the introduction of a number of new and expanded tax credits aimed at boosting onshore American manufacturing. These incentives represent opportunities for manufacturing within critical industries, in particular those industries that are key players in the administration’s goal to address climate change. The incentives range from tax credits available directly to manufacturers of certain equipment, to incentives for taxpayers to purchase equipment from American manufacturers. A new production tax credit, the Section 45 ..read more

As the pandemic highlighted issues in the global supply chain and as the United States intensifies its investment in clean energy, more renewable energy manufacturers than ever are considering onshoring (or nearshoring) manufacturing facilities in the United States.  Domestic demand for clean energy is at an all-time high and doesn’t look to be slowing.  Domestic production may help satisfy U.S. consumer demand for predictable delivery schedules and prices.  Below we outline some of the current forces driving the move to onshore. And while onshoring is uniquely incentivized righ ..read more

On February 13, 2023, the Department of Treasury and the Internal Revenue Service released Notice 2023-17, providing a high-level overview of the program to be established under Section 48(e) of the Internal Revenue Code (the “Code”) related to the Low-Income Communities Bonus Credit Program (the “Program”).  Section 48(e) provides an investment tax credit adder of up to 20% for certain solar and wind facilities, including any energy storage technology installed in connection with such eligible facilities, that are placed in service in connection with low-income communities.  The add ..read more

A carbon credit is a form of instrument or permit that represents one ton of carbon dioxide removed from the atmosphere. While these carbon credits can be purchased by an individual (think Taylor Swift or Floyd Mayweather, who may want to offset carbon emissions from the use of private jets), they are more commonly purchased by companies to make up for carbon dioxide emissions that come from industrial production, delivery vehicles or travel. Carbon credits thus serve as a tool for companies to meet greenhouse gas reduction targets – both government-mandated and voluntary – without materially ..read more

2023 has just begun, but the energy industry conference circuit is well underway! In this episode of Powered by Foley, we are joined by partner Darin Lowder and Senior Counsel Natalie Neals who headed down to the Big Easy to be on the ground for Infocast’s sold-out event, Projects & Money. Darin and Natalie touch on takeaways from deals in 2022, the factors driving optimism for deal volume in 2023, and key challenges for markets following passage of the Inflation Reduction Act. On the Powered podcast, Foley’s Renewable Energy Team will bring you the key issues of the day in the renewable e ..read more

Crypto-assets such as Bitcoin are often criticized for consuming more energy than entire countries as a result of energy-intensive “mining” activities.  However, other crypto-assets such as Ethereum consume significantly less energy and many crypto-asset mining operations use renewable energy or energy that would otherwise be wasted, such as flare gas from oil drilling.  As crypto-assets become more widely adopted, government officials seek guidance to help inform policy decisions and ensure the responsible development of crypto-assets and their underlying blockchain technologies.&nb ..read more

The United States Patent and Trademark Office (USPTO) has recently joined the WIPO GREEN technology exchange platform of the World Intellectual Property Organization. WIPO GREEN was established in 2013 with an online technology exchange platform that connects entities with needs for solving climate change problems with sustainable solutions.  The WIPO GREEN database includes thousands of technology resources in a wide range of green technology and climate change categories.  In the energy space, WIPO GREEN provides resource and needs information from around the world in areas such as ..read more