Which Lease Agreement Could Preclude the ITC?
Thursday, November 18th, 2010
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Hello!
In a previous post you discuss how solar providers can set up lease arrangements with nonprofits, which will allow the solar provider to take advantage of the federal investment tax credit. However our accountant has advised us that the type of lease arrangement you discuss – with an option to purchase after five years – would be considered a capital lease and as such the tax credits would flow not to the solar provider but the nonprofit entity (who, of course, could not use them). This is backed up with definitions from the following website. Any thoughts?
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Do you have a pressing legal question about a renewable energy project that you are developing? Are you concerned about a cleantech regulation that was just passed in your state?

