There are two federal tax credits for renewable energy,
1. Federal investment tax credit (ITC), which amounts to approximately 30% of the cost of construction of renewable energy facilities.
2. Production tax credit (PTC) or renewable energy credit (REC), which is given for each unit of renewable energy produced
These tax credits have been designed to incentivize the development, deployment and production of renewable energy technology. Federal tax incentives for renewable energy projects are designed to subsidize the costs of construction of renewable energy facilities; to stimulate the economy by creating jobs in renewable energy exploration; to encourage investment in socially responsible forms of energy production; and to encourage investment in renewable energy research and development.
Cherrytree Group LLC can help you determine if you qualify for tax credits, grants, or other incentives, analyze your financial projections and development costs, as well as guide you through the process of applying for and securing tax credit awards, as well as syndicating the tax credits. ITC's, are non-transferrable and require an IRS sanctioned partnership structure for the use of the tax credits. We are able to structure these entities and syndicate ITC's using our structure. PTC's, or REC's, on the other hand, once generated can be sold in order to receive revenue for the producer of the renewable energy. This source of revenue subsidizes the operating costs of a renewable energy facility.
These transactions typically require a lawyer, an accountant, a consultant, and an investor (usually secured by a syndicator). The Cherrytree Group LLC can act as the consultant, investor, or syndicator, adding efficiency to your transaction, saving you time and money.