Renewable Energy Tax Credits

The energy business is changing rapidly. The worldwide shift toward clean, renewable energy and net-zero emissions, along with passage of the Inflation Reduction Act of 2022 (IRA) and the One Big Beautiful Bill Act of 2025 (OBBBA), pose unique challenges for the energy sector but also offer new opportunities. BakerHostetler helps our clients navigate the evolving energy landscape and take advantage of opportunities, including tax credits and incentives, to innovate, grow and continue meeting their business objectives.

Represent corporate buyers and investors in tax credit purchase and tax equity investment transactions, which involves drafting and negotiating a tax credit transfer agreement and/or operating agreement, equity capital contribution agreement, and membership interest purchase agreement, and providing tax, regulatory, real estate, and environmental diligence (as needed). We have closed transactions relating to Section 45 energy production tax credits, Section 48 investment tax credits, Section 45Z clean fuel credits, Section 45X advanced manufacturing and production credits, Section 48E clean electricity investment tax credits, and Section 30C alternative fuel vehicle refueling property tax credits.
Represent developers of renewable energy facilities with respect to the construction and placing in service of a renewable energy facility, which involves drafting and negotiating investor documents and organizational documents, advising on energy regulatory and site control issues, advising on environmental laws and regulations, and developing strategies to monetize renewable energy credits.
Represent institutional lenders in backleverage and direct project construction and term loans financing renewable energy facilities, which involves drafting and negotiating loan and collateral documents and advising on regulatory, environmental, real estate, and tax credit monetization issues.
Represent and advocate for a leading manufacturer of structural support and solar tracker systems for solar energy projects before the IRS and Treasury Department, including with respect to future guidance involving the IRA. Also advise the client regarding the structuring of commercial agreements with vendors and suppliers to help qualify for renewable energy credits under the IRA and with respect to monetization strategies, including direct pay elections and one-time sales of credits.
Represent and advise a leading manufacturer of battery cells and modules with respect to Section 45X, monetization strategies, and the prohibited foreign entity and material assistance rules (e., FEOC).
Advising a project sponsor on corporate, tax and securities regulation matters in its process of developing solar and energy storage facilities.
Represent both manufacturers of renewable energy properties and developers that want to qualify for the domestic content and/or energy community bonus credits.
Represented multiple F100 corporations on renewable energy tax credit transfer transactions, tax equity investments, and “hybrid” or “t-flip” structures combining tax equity investments with tax credit transfers.
Provided advice to a multinational manufacturer of blades and nacelles that is interested in qualifying for advanced manufacturing production credits under the IRA on what project developers and sponsors (i.e., the manufacturer’s clients) will request based on the IRA’s investment tax credit provisions.
Advise an agricultural company that produces clean fuels and advocated on its behalf on Capitol Hill with respect to proposed changes to Section 45Z to help maximize the clean fuel credits and make them more advantageous for the client’s business.
Represent and advocate for an energy storage solution trade group before the IRS and Treasury Department. Advocacy includes guiding the trade group through the regulatory process and counseling its leaders by providing insights relating to future guidance.
Have defended many historic tax credit transactions, solar tax credit transactions and other tax credits and related transactions in IRS audits, at IRS appeals and in tax litigation.