Tax Equity Investor Services

Corporations with ESG strategies that include tax-incented investing in renewable energy assets often find the financial and tax accounting aspects especially complex. Most lack the specialized resources to structure, model, execute, and support this investment strategy. CohnReznick can provide the leadership and acumen necessary to help investors and sponsors successfully navigate these challenges, optimizing renewable energy investments from an environmental, social, and financial perspective.

With a deep understanding of the myriad investment vehicles and structures, we provide services covering the full lifecycle of your investment.

Before making an investment, we advise on pricing by benchmarking to comparable transactions. Our services include:

Validating the valuation methodologies and assumptions used by the appraiser and cost segregation provider
Advising on the tax and financial accounting implications of the investment
Assisting through negotiations with counterparties including sponsors, syndicators, and/or deal attorneys

We write white-label accounting memorandums covering a wide range of financial accounting aspects of the investment, including consolidation assessment, accounting for the equity method investment, accounting for the investment tax credit and deferred tax items, and identifying and accounting for embedded features such as call options.

Using a best-in-class financial model that can be customized for the investment, CohnReznick:

Provides dashboard reporting to assess the performance of the investment against forecasts
Models the various financial accounting and tax aspects of the transaction
Provides projections of financial accounting results to help investors understand the financial accounting and tax impacts through the full life of the investment
Delivers audit-ready/audit-friendly inputs, calculations, and rollforwards that are traced and agreed to supporting documents

We provide a custom-designed curriculum – either in-person or virtually – addressing the economic, tax, and financial accounting impacts of an investment.