Altus Power Announces Innovative Tax Partnership, Maximizing Market Efficiency
October 01 2024 - 8:00AM
Business Wire
Altus Power (NYSE: AMPS), the largest commercial scale provider
of clean electric power, today announced the successful structuring
of a groundbreaking tax equity transaction and partnership model
with its existing partners. This transaction marks a significant
evolution for Altus Power, which maximizes market efficiency and
competitiveness in structuring renewable energy project
financings.
The deal is notable given its innovative structure, which
allocates a portion of the investment tax credits (“ITCs”) from
recently completed solar projects to an existing partner through a
traditional tax equity partnership, consistent with those which
Altus has formed in the past. However, in a first-of-its-kind move
for Altus Power, the new structure leverages the flexibility
created in the Inflation Reduction Act to directly transfer a
majority of the ITCs from the tax equity partnership to other
partners of Altus Power with significant tax capacity. This hybrid
approach enhances Altus’ flexibility and expands the market for
Altus Power to place ITCs with new tax partners.
"We are proud to pioneer this innovative tax credit transaction
that not only allows us to respond to the dynamic tax equity market
conditions but also to continue to offer a highly competitive
structure for our partners," said Abhi Parmar, Head of Investment
and Structured Finance, Altus Power. "By incorporating the ability
to transfer tax credits, we are unlocking new opportunities for
value creation and expanding relationships with additional Altus
Power partners who have interest in acquiring investment tax
credits via direct transfer.”
The transaction underscores Altus Power’s commitment to remain
at the forefront of market innovation while continuously optimizing
its financial structures to benefit both partners and stakeholders.
As the renewable energy landscape evolves, Altus Power remains
dedicated to finding creative solutions that drive success and
sustainability.
About Altus Power
Altus Power, based in Stamford, Conn., is the largest
commercial-scale provider of clean electric power serving
commercial, industrial, public sector and Community Solar customers
with end-to-end solutions. Altus Power originates, develops, owns
and operates locally-sited solar generation, energy storage and
charging infrastructure across the nation. Visit www.altuspower.com
to learn more.
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For More Information Jenny Volanakis
mediarelations@altuspower.com
Altus Power (NYSE:AMPS)
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