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The tax equity market must go on to function. Nevertheless, a single consequence of Defeat is some tax equity investors may perhaps test supplying credit for only eighty% of tax credits in pricing via 2025 and zero after 2025. This will cause wind developers, whose Defeat difficulties are more acute than solar, to switch to investment decision tax credits or transfer to your "pay back-go" framework for tax credits soon after 2025.
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The Invoice topics these untaxed earnings to US tax as In the event the earnings had been introduced back again to the US, thus triggering a tax. All publish-1986 Internet "earnings and income" are going to be taxed at a 15.
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The base erosion tax involves an once-a-year calculation. Tax equity investors is not going to know right up until the top of check here each and every year whether they must pay again tax credits on which they have been counting that 12 months.
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