BT Renewable Energy Tax Credit Fund
Purchase energy tax credits to mitigate your tax liability
BT Renewable Energy Tax Credit Fund
The Inflation Reduction Act (IRA) is the largest clean energy incentive effort in U.S. history. The Act expanded the number of tax credit programs, amount of available funding and processes for utilizing funds.
Most importantly, the IRA introduced the concept of “transferability” — allowing a one-time transfer of a credit, essentially a tax rebate, from seller to buyer. Tax credit buyers are typically either C-corporations or individuals, trusts or family offices with passive income and an expected tax liability, looking to purchase credits to lower their tax liability.
Benefits of purchasing transferable renewable energy tax credits
- No project involvement. Buyers can acquire the credit without being an owner in a clean energy development project.
- Same-year usage. Buyers can target their capital directly for the tax year(s) in which they have tax liability to offset, eliminating the need to project for future tax years.
- Tax-exempt. The discount between credit value and purchase price is not subject to tax for the buyer.
- Offset quarterly tax payments. Buyers can use credits against quarterly estimated income tax payments.
- Carryback or carryforward. Buyers can generally use credits via a three-year carryback or 22-year carryforward
Baker Tilly’s renewable energy tax credit fund
Our fund, BT Renewable Energy Tax Credit Fund I, LLC, is designed to provide you with efficient access to the Investment Tax Credit (ITC)/Production Tax Credit (PTC) sale/transfer marketplace to help minimize your tax liability, with strong risk-adjusted returns while supporting or elevating your ESG initiatives.
Fund overview
Overview of terms
- Unit price: $940,000
- Tax credits per unit: $1,000,000
- Offering size: 100 units
- Minimum investment: 1 unit
- Fund’s fees and operating expenses are included in unit price
- Offering type: 506(c)
Reference PPM and subscription documentation for complete offering details.
Risks
Buyers are subject to recapture of ITCs (no recapture for PTC). Risks are mitigated through Baker Tilly’s underwriting and monitoring of potential recapture events, and through creditworthy indemnifications from sellers and/or recapture insurance.
Reference PPM and subscription documentation for complete offering details
How it works
Fund capitalization
Buyer reviews offering documentation and executes subscription agreement.
Transaction organization
Fund Manager enters into Letters of Intent with sellers, underwrites and negotiates transactions, calls capital from fund investors and closes transaction on behalf of the fund. Investors’ capital is only called for transaction closings.
Asset/fund management:
For each tax year’s series, Fund Manager provides periodic pipeline reporting until fully invested, quarterly asset management reporting, annual tax reporting and will unwind each series upon the completion of the final compliance period
Why Baker Tilly?
Baker Tilly was a first mover and leader in providing a best-in-class process used to verify the value of a project’s ITCs and PTCs available through the IRA. This same industry-leading platform is used to underwrite and mitigate against tax credit recapture risks with the fund’s investments. Many of the ITC/PTC sellers are expected to be clients of this ITC/PTC substantiation service.
- Baker Tilly has extensive expertise in the syndication of federal tax credits, including:
- Transaction diligence and underwriting performed using the same process and memos developed for ITC/PTC substantiation.
- Compliance and fund management performed by our real estate advisory team, which also monitors tax credit recapture compliance for New Market Tax Credits.
- Investor relations performed, using the Juniper Square platform for investors
50+
compliance and fund management staff
$22B
in tax credit syndication
250+
NMTC funds under management
IRA
compliance documentation leader
Ready to lower your tax liability?
Contact one of our IRA tax credit specialists to get started today:
About BT REI Manager, LLC
BT REI Manager, LLC (BT REI) is a subsidiary of Baker Tilly Advisory Group, LP (BTAG), and part of the Baker Tilly real estate advisory group. BTAG is a top 10 advisory and tax firm in the U.S. Within BTAG, real estate advisory is the largest industry group where our team specializes in real estate acquisition, development, management and disposition. BT REI is led by the same experienced real estate finance specialists who advise the real estate clients of BTAG. They have significant experience assisting clients with investment structuring, diligence, capital raising, identifying cost-effective alternative sources of financing, securing tax credit and incentivized financing, and creating and executing real estate acquisition and disposition strategies. They distribute Regulation D private placements through independent broker-dealers, registered investment advisers and family offices