Energy Generation Project Finance

The Business Energy Investment Tax Credit (ITC) permits project owners or third-party investors to receive a credit against Federal income taxes for the installation of renewable energy equipment. The ITC totals 30% of the cost of solar energy property, fuel cells and small wind turbines for projects placed in service by December 31, 2016. The credit totals 10% of the cost for geothermal heat pumps, micro-turbines, and combined heat and power systems placed in service by December 31, 2016.

Bonus depreciation of 100% may be claimed for projects placed in service by December 31, 2011, and 50% depreciation for those placed in service by December 31, 2012. The bonus depreciation is an exception to MACRS depreciation (generally, 5-7 years) and reduces the adjusted basis of the project by 1/2 of the ITC. ITC-eligible projects may also elect to receive a direct grant (1603 Grant) in lieu of the tax credits for projects under construction by December 31, 2011.

The Production Tax Credit (PTC) is a kWh-based credit for wind, biomass, hydroelectric, geothermal, and other qualifying renewable electricity generating projects. For projects that are placed in service by December 31, 2012, the project may elect to take the ITC or the grant.

UFA provides investment capital for renewable energy projects that qualify for ITC, PTC and various state energy tax credits. Since 2008, UFA has financed six energy projects including solar, wind, and biogas with a combined 13.5 MW of generation capacity.

Click here for more information on ITCs (PDF)

Advanced Energy Manufacturing Facility Finance

The Qualifying Advanced Energy Project Credit (MTC) provides a credit against Federal income taxes for investment in renewable energy manufacturing facilities. The MTC totals 30% of the basis in property that re-equips, expands or establishes a manufacturing facility that produces renewable energy property.

UFA provides equity investments for manufacturing facilities that qualify for the MTC.

Click here for more information on MTCs (PDF)