+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
Two thirds of accountants, tax lawyers surveyed by Bloomberg BNA say they are unaware how clean energy tax credits work
New York and Arlington, Va. ( March 13, 2012) - Tax professionals are generally unfamiliar with the various tax incentives available to private investors in clean energy projects, despite the fact that many have participated in other kinds of "tax equity" transactions, according to a survey conducted by Bloomberg BNA in consultation with Bloomberg New Energy Finance.
The online survey of subscribers to Bloomberg BNA's Tax and Accounting Center found that 35% of respondents have made tax equity investment either directly or on behalf of clients in areas other than clean energy, such as low-income housing. Despite this, 65% said they were mostly or completely unfamiliar with the incentives available to backers of US wind projects known as the Production Tax Credit. Only 7% described themselves as extremely familiar with the PTC, which was used to finance approximately 4,000 megawatts of wind capacity in 2011, or around 70% of total US wind installations, according to Bloomberg New Energy Finance estimates.
The survey comes as the US clean energy sector seeks to grow by attracting new private investment from corporations in the form of tax equity. Bloomberg New Energy Finance presents the results of the survey today at a White House meeting hosted by the US Department of Energy. The event brings together chief financial officers and others from Fortune 500 companies as the administration highlights opportunities available to large corporations in clean energy tax equity investing.
When asked why they or their clients had not made a clean energy tax equity investment, a majority answered that it was either not a strategic fit with the company's business or that they believed there were better returns available elsewhere. Twenty-one percent of those answering the question responded that they did not make the investment because they were unaware of a tax equity option. Nearly all of the respondents indicated that a clean energy investment would be for the purpose of supplying the client's own energy needs.
"These results suggest an information disconnect," said Michael Liebreich, chief executive of Bloomberg New Energy Finance, the clean energy market research division of Bloomberg. "Tax equity investing today offers backers of clean energy projects, based on proven technologies, comparatively high risk-adjusted returns, given the current low interest-rate environment. Apparently though, many in the tax community have failed so far to spot the opportunity for their clients."
Detailed results are available on Bloomberg BNA's Daily Tax Report. For more information, visit www.bna.com.
# # #
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).