Tax Equity Modeling

Build a Tax Equity financial model from scratch.

This is an intensive course providing an overview to tax equity structures commonly used in U.S. renewable energy investments, with a focus on the development of a financial model.

This is not a beginners course and we would strongly recommend taking Renewable Energy Project Finance Modeling in advance of Tax Equity. The tax equity course assumes knowledge of  (1) the initial grounding in best practice modeling techniques and (2) some of the tax concepts introduced in the Renewable Energy Project Finance Modeling course (“REPFM”). The Tax Equity course goes deep into tax capital accounts, deficit restoration obligations, stop loss allocations, and HLBV accounting. None of that content is contained in REPFM. You will build a tax equity model from scratch.

Our courses are not limited to financial modeling and best practices in Microsoft Excel.  We are committed to explaining how the numbers align with underlying financial and engineering concepts, transaction structures, legal documentation, market conditions and risk management approaches. We don’t just teach how to build models. We teach how to do

By the end of this course, participants will be able to:

  • Understand the Best practice modeling techniques for U.S. taxation, partnership allocations, tax capital accounts and HLBV accounting

Who should attend:

This course will benefit the following people:

  • This course is best suited to people with experience in the sector, however those who have completed our Renewable Energy Project Finance Modeling course with a keen interest in tax equity are encouraged to join
  • Important for foreign investors looking to understand the US market
  • Analysts, associates, vice presidents and banks, funds, investors, developers and operating entities needing to understand the complexity of tax equity
  • CFOs or other finance team members of operating entities who have the mis-fortune of taking over a deal tax equity model

Course delivery options:
This course can be completed numerous ways, including:

  • Self-paced, online – complete this course online at your own pace.
  • Live streaming – join with other professionals in a small group environment to complete this course.
  • Inhouse – this course can be customized to address the unique challenges that your team or organization face.

Why trust Pivotal180 with your professional development?

There are many reasons why we stand out from other firms, but the following is what makes us particularly unique:

  • Pivotal180 is focused exclusively on teaching. Institutional and human capacity building is not a side business. It is core
  • Daniel Gross and Haydn Palliser (both Ivy League Professors) personally lead all Pivotal180 training courses
  • We have led deals. Our understanding is from practical transactional experience, not from reading about it or hearing about it from senior people on our team
  • We have trained the top advisors, developers, lenders, and funds across the world.
  • We tailor our courses more than anyone else in the market, to meet your needs
  • Our blended solution includes 12 months of access to our online courses, such that your team can review concepts AND dive deeper into topics we do not have time to cover in class.

Our courses are not limited to financial modeling and best practices in Microsoft Excel.  We are committed to explaining how the numbers align with underlying financial and engineering concepts, transaction structures, legal documentation, market conditions and risk management approaches. We don’t just teach how to build models. We teach how to do

Course Outcomes

Tax equity concepts

Best practice modeling techniques for U.S. taxation, partnership allocations, tax capital accounts and HLBV accounting

High-level introduction to sale leaseback and inverted lease/pass-through structures

Register your interest in our online courses



Course Previews

US PTC tax credit

Tax equity s704b capital account

Tax Equity Model Familiarization

These videos are course samples from the tax equity modeling course.

OUR BLENDED LEARNING COMBINING IN-CLASS AND ONLINE MATERIAL ENSURES THAT WE TEACH MORE AND YOU LEARN MORE.

Course Portfolio Region Course Delivery Start Date Price Register/Enquire
Tax Equity Modeling All Online Self Paced Available Now USD 800 Register
Tax Equity Modeling All Live Streaming 17 Feb, 2021 Contact Us Register
Tax Equity Modeling All Live Streaming 17 Feb, 2021 Contact Us Reserve a place
Tax Equity Modeling All Live Streaming 22 April, 2021 Contact Us Reserve a place
Tax Equity Modeling Africa & ME Public Session Early 2021 Contact Us Reserve a place
Tax Equity Modeling Americas Public Session Early 2021 Contact Us Reserve a place
Tax Equity Modeling All Inhouse Tailored On Request Contact Us Request proposal

Contact us for on-site or on-campus pricing and options.

The cost of the online course will be credited to you if you join a public or live streaming session within 12 months of purchase.

Discounts provided off the full course prices.

  • Students and non-profits are eligible for a discount of 50% (no other discounts may be added to this).  Online course price for students and non profits is $400.

 

  • Other discounts
    • Group booking of 3 or more people – 15%  Price per person for online group bookings is $680.
    • Early bird (interactive online sessions only ) if book 8 weeks before the course – 10%.
  • 12 months access to our online material, including concept videos with transcriptions, lecture slides, downloadable spreadsheet examples.
  • A complete step-by-step model walk-through using an annual model, and access to discussion forums for ongoing questions.
  • A downloadable quarterly Tax Equity model
  • Subscription can be extended annually post the first 12 months for $100 per annum.
  • Lunch, tea & coffee at the venue (public session participants only).
  • Membership to the Pivotal180 alumni network.
  • Course completion certificate.
  • This course is best suited to people with experience in the sector, however those who have completed our Renewable Energy Project Finance Modeling course with a keen interest in tax equity are encouraged to join
  • Important for foreign investors looking to understand the US market
  • Analysts, associates, vice presidents and banks, funds, investors, developers and operating entities needing to understand the complexity of tax equity
  • CFOs or other finance team members of operating entities who have the mis-fortune of taking over a deal tax equity model
Section Overview
Pre-requisites
  • This course presumes prior knowledge of advanced Excel functions, techniques, best practice financial modeling techniques and concepts such as debt sizing, debt sculpting, and optimizing a model to a required PPA price.
  • It is highly recommended to take the Pivotal180 Renewable Energy Project Finance Modeling Course before enrolling in the Tax Equity course
Pre-course material
  • Course requirements and overview
  • Excel functions required
  • Review of best practice principles
  • Review of flags and accounts
  • Overview of starting model (basic operations)
Tax Incentives and Restrictions
  • Accelerated depreciation (Section 168)
  • Calculating MACRS schedules using VDB function
  • Eligible plant, property and equipment
  • Section 45 Production Tax Credits (PTC)
  • Section 48 Investment Tax Credits (ITC)
  • Tax credit recapture
  • Net Operating Loss carryforwards (NOLs)
  • Thin capitalization and deductibility of interest expense
Partnership Concepts
  • Disproportionate allocations
  • Substantial economic effect
  • Flip structures and triggers
  • s704(b) tax capital accounts and s754 step-ups
  • Income upon liquidation
  • Safe harbor rules
Partnership Modeling
  • ITC depreciable basis reduction
  • Outside basis tax capital accounts
  • Straight-line depreciation
  • S731(a) gains
  • s704(d) loss limitation and suspended losses
  • s734(b) depreciation
  • Sponsor and tax equity stop loss reallocations
  • Deficit Restoration Obligations (DRO)
  • Stop loss reallocationsCalculating the flip date(s)
GAAP Accounting
  • Hypothetical liquidation at book value method accounting (HLBV)
  • Partnership vs. the individual partners
  • Tax equity investor vs. “cash equity”sponsor
Capital Structure
  • Back leverage debt sizing and repayments
  • Construction funding and tax equity bridging loans
  • Key provisions of relevant legal documents:
    • Limited Partnership Agreement (LPA)
    • LLC Agreement (Operating Agreement)
    • Equity Capital Contribution Agreement (ECCA)
Market Conditions
  • Commonly used partnership allocation structures
  • Typical hurdle rates
  • Sources of capital and market participants
  • Leading advisors and other service providers
Returns
  • Investor IRR
  • Exit scenarios
Core outputs
  • Developing a partnership balance sheet
  • Outputs required for an investment decision
  • Best practice graphs and visual presentation
Optimizing a tax equity model
  • Achieve target hurdle rate by sizing:
    • Funding percentages
    • Allocations of cash and tax
    • Flip triggers

Pre-requisites

    1. It is strongly recommended you have completed the Renewable Energy Project Finance Modeling Course (either as a public session or online) prior to taking this course. If you haven’t completed this recommended course, please speak with us to determine if the course is appropriate for you.
    2. This course also assumes prior knowledge of advanced Excel functions and techniques as well as best practice modeling skills
    3. Knowledge of project finance pass-through entities, generation and operations of renewables projects, and tax calculations recommended (covered in recommended course above)


Equipment Required

Area Items Needed
Online Course

Computer, 2 screens preferable, Microsoft Excel

Public Session

Laptop & Power cord

Public courses run from 9am – 5.30pm at a location to be confirmed post registration

Live streaming are 2.5 hour live sessions for 3 days a week (Tuesday-Thursday) over a 3 week period

Live streaming classes start at 11am New York time, so are accessible to most people in the Americas, Africa, and Europe

Online course has over 16 hours of content and will take about 26 hours to complete if you do it from start to finish

Range Amount
>4 weeks before the course Full Refund
1-4 weeks before the course 50% Refund
<1 week before the course No Refund

Get in touch to discuss our training or advisory services