June 01, 2018 In: In The News, Project Finance, Tax Equity

Power Finance & Risk spoke with Principal & Managing Director, Conor McKenna, to discuss current tax equity deals and utility involvement in the market.

PFR reported that tax equity investors and advisers are gearing up for a spate of deals from the regulated utility sector, which is facing a shortfall in tax liabilities to offset with credits in the wake of last year’s U.S. tax reform.The provisions in the “Tax Cuts and Jobs Act”—especially those relating to bonus depreciation—have had a number of implications for regulated utilities, resulting in a potential bonanza for third-party tax equity investors.

“Right now utilities are fighting with one hand tied behind their back,” says Conor McKenna, principal and managing director at CohnReznick Capital in New York. “They are at a disadvantage relative to other buyers in the market because they are not able to optimally utilize the tax benefits inherent to renewable energy projects due to their tax structure.”

To read the full article, click here.

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