Michael Fellerman and Bob Box wrote an article in Tax Credit Advisor titled, “Legally Speaking: Do You Have a Solar Strategy?”
The Inflation Reduction Act of 2022 (IRA) provides a broad range of new incentives to install solar energy equipment, many of which are available to Low Income Housing Tax Credit (LIHTC) projects and some that are uniquely available for affordable housing. As you begin the development process for a project, do you have a strategy that identifies the potential financial and non-financial benefits of solar, how are you going to monetize those benefits and what are the potential drawbacks and risks associated with installing solar energy equipment in your project?
For many LIHTC projects, the benefits received from the ITC may only be “gravy,” but having a good solar strategy in place before you start your development can reduce operating costs, increase loan proceeds, reduce utility costs to tenants and decrease the use of fossil fuels all at little to no cost to a LIHTC project.
The full article can be found here.