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Leasing of Solar Energy Equipment
For traditional institutional equity investors in leveraged and single-investor equipment lease transactions, solar equipment may offer an attractive investment opportunity. Leasing solar equipment may also provide an attractive investment structure for traditional investors in power projects looking to expand investments in renewable energy projects.
The most attractive features of a lease structure to many investors are acquiring sole ownership of the asset and a hell or high water obligation of the lessee to make fixed rental payments. This fixed income stream also facilitates leveraging ownership of the asset by pledging the lease stream to a lender in cases where the economics of the investment are enhanced through leverage.
Like other assets producing energy from renewable fuel sources, solar equipment receives favorable tax treatment under the federal income tax code and many state and local tax regimes. There are also myriad state and local economic incentives including rebates and other benefits mandated by law. However, the federal tax code favors solar investment by providing that a passive corporate investor (otherwise engaged in the active conduct of a trade or business) in solar equipment may be eligible for the federal tax benefits without itself being actively engaged in producing electricity. This is to be contrasted with investments in assets producing power from wind and other renewable resources where eligibility for the primary federal income tax benefit, the production tax credit, is dependent on the taxpayer actually producing the electricity and selling it to an unrelated person. To satisfy the active production requirement for non-solar assets, a partnership (or other jointly owned entity treated as a partnership for income tax purposes) with a developer is often formed as an investment vehicle to own and operate the power production assets.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.