Pilar Thomas Quoted in Tribal Business News About Tribal Clean Energy and Tax Credits
Pilar Thomas, a Quarles & Brady partner in the Energy & Infrastructure and Indian Law & Policy Practice Groups based in the firms Tucson, Ariz., office, provided insight to Tribal Business News about tribal clean energy and questions around policy implementation and tax exemptions.
Specifically, the article discusses the many questions that have emerged around direct-pay tax credits that allow tribes to claim refundable tax credits on qualified energy projects, and 48e bonus credits, which encourage investments in low-income or disadvantaged areas such as tribal reservations, experts say.
Below is an excerpt:
Energy lawyer Pilar Thomas, a partner at Quarles & Brady LLP, calls tax credits the single most effective way to obtain money for a new project. Grants are competitive and loans have to be paid back, which makes tribes hesitant to pursue them and banks equally hesitant to issue them, Thomas told Tribal Business News.
Being able to say that a finished project will immediately recoup 30 to 70 percent of its costs, depending on stackable credits, makes the entire equation smoother, Thomas said.
“Somebody's going to be more willing to invest in a $15-20 million project when they know you're going to get a 30-40-50 percent tax credit. They’re going to be more willing to borrow it,” Thomas said. “The tax credits are really the part that seals the deal from a financing standpoint.”