Tax Credits

Covington’s Tax Practice advises clients on their significant energy-related investments and tax credit monetization transactions. Drawing on our deep expertise in these areas, we regularly interact with Congress and relevant government agencies on tax credit matters. Working together with top talent in our Energy, Environment, and Public Policy groups, we assist clients in meeting their near-term and long-term objectives and in obtaining the full amount of tax benefits due to them in a wide variety of industries--including in areas of electricity generation, clean vehicles, advanced manufacturing, carbon capture, and clean hydrogen.

Capabilities

• Tax-efficient structuring of international and domestic clients’ investments in clean energy infrastructure, including tax equity, partnerships and joint ventures, leasing, and other bespoke arrangements
• Advice related to foreign entity of concern (FEOC) exclusions and their supply chain issues
• Tax credit monetization for taxpayers claiming credits through elective payment and transferability elections, and clients purchasing tax credits to reduce their tax burden
• Preparation of comment letters to the IRS and Treasury to provide guidance in the development of the governing rules in this area
• Advocacy in IRS audits and litigation involving novel tax credit issues
• Lobbying Congress related to legislation that incentivizes clean energy investments and activities