Industry Current: Wind, Solar Dodge Bullets as Tax Bill Heads to Trump’s Desk

Having cleared both the House and Senate this week, the final version of the Republicans’ signature tax reform bill puts to rest many of the fears expressed by the renewable industry, but leaves unclear how the broader tax equity market will adapt to the new rules, writes Eli Katz, partner at Latham & Watkins in New York, in this week's Industry Current. Having cleared both the House and Senate this week, the final version of the Republicans’ signature tax reform bill puts to rest many of the fears expressed by the renewable industry, but leaves unclear how the broader tax equity market will adapt to the new rules, writes Eli Katz, partner at Latham & Watkins in New York, in this week's Industry Current. [...]the renewable industry avoided most of the proposals that would have dramatically affected the market. The corporate alternative minimum tax (AMT) and the House's proposals to reduce production tax credits by one-third and change the Internal Revenue Service's liberal start-of-construction rules were all eliminated in the final bill. [...]tax equity transactions that have not yet closed, including those with outstanding debt and/or tax equity commitments, may need to resize the cost and availability of tax equity.