Alternus Secures First Investment Tax Credit under the IRA to Finance Solar Projects
Alternus Clean Energy (NASDAQ: ALCE) has completed its first tax equity transaction utilizing the investment tax credit (ITC) structure from the Inflation Reduction Act. The transaction involved a tax credit transfer of approximately $1.74 million of 2023 ITCs for the Omohundro and White's Creek Solar Projects in Tennessee. These installations supply energy for Metro Water Services' operations. The proceeds were used to cover transaction costs and reduce senior debt, improving the company's consolidated balance sheet position.
Alternus Clean Energy (NASDAQ: ALCE) ha completato la sua prima transazione di equità fiscale utilizzando la struttura del credito d'imposta per investimenti (ITC) prevista dall'Inflation Reduction Act. La transazione ha coinvolto un trasferimento di crediti d'imposta di circa $1,74 milioni di ITC del 2023 per i progetti solari Omohundro e White's Creek in Tennessee. Queste installazioni forniscono energia per le operazioni dei Metro Water Services. I proventi sono stati utilizzati per coprire i costi della transazione e ridurre il debito senior, migliorando così la posizione patrimoniale consolidata dell'azienda.
Alternus Clean Energy (NASDAQ: ALCE) ha completado su primera transacción de capital fiscal utilizando la estructura del crédito fiscal a la inversión (ITC) de la Ley de Reducción de la Inflación. La transacción involucró una transferencia de créditos fiscales de aproximadamente $1.74 millones de ITCs de 2023 para los Proyectos Solares Omohundro y White's Creek en Tennessee. Estas instalaciones suministran energía para las operaciones de Metro Water Services. Los ingresos se utilizaron para cubrir los costos de la transacción y reducir la deuda senior, mejorando así la posición del balance consolidado de la empresa.
Alternus Clean Energy (NASDAQ: ALCE)는 인플레이션 감축 법안에 따른 투자세공제(ITC) 구조를 활용하여 첫 번째 세금 자본 거래를 완료했습니다. 이 거래에는 테네시주 오모헌드로 및 화이트 크릭 태양광 프로젝트를 위한 2023 ITC의 약 $1.74 백만의 세금 공제가 포함되었습니다. 이 설치들은 메트로 수도 서비스의 운영에 필요한 에너지를 제공합니다. 수익금은 거래 비용을 충당하고 선순위를 가진 채무를 줄이는 데 사용되어 회사의 통합 재무 상태를 개선했습니다.
Alternus Clean Energy (NASDAQ: ALCE) a complété sa première transaction de capital fiscal en utilisant la structure du crédit d'impôt pour investissement (ITC) du Inflation Reduction Act. La transaction a impliqué un transfert de crédits d'impôt d'environ 1,74 million de dollars d'ITCs pour les projets solaires Omohundro et White's Creek dans le Tennessee. Ces installations fournissent de l'énergie pour les opérations des services d'eau de Metro. Les fonds ont été utilisés pour couvrir les coûts de la transaction et réduire la dette senior, améliorant ainsi la position du bilan consolidé de l'entreprise.
Alternus Clean Energy (NASDAQ: ALCE) hat seine erste steuerliche Eigenkapitaltransaktion abgeschlossen, bei der die Struktur des Investitionssteuerguts (ITC) aus dem Inflation Reduction Act genutzt wurde. Die Transaktion beinhaltete eine Übertragung von Steuergutschriften in Höhe von etwa $1,74 Millionen an ITCs für die Solarprojekte Omohundro und White's Creek in Tennessee. Diese Anlagen liefern Energie für die Betrieb von Metro Water Services. Die Erlöse wurden verwendet, um Transaktionskosten zu decken und die vorrangigen Schulden zu reduzieren, wodurch die konsolidierte Bilanzposition des Unternehmens verbessert wurde.
- Successfully secured $1.74 million in tax credits through IRA
- Reduced senior debt through tax credit proceeds
- Improved balance sheet equity position
- None.
Insights
This tax credit transaction marks a significant milestone for Alternus Clean Energy, demonstrating effective utilization of the IRA's new ITC structure. The
The successful execution of this first tax equity deal creates a blueprint for future transactions, potentially accelerating Alternus's project development pipeline while optimizing capital structure. The ability to monetize tax credits through transfers, rather than traditional tax equity partnerships, provides greater flexibility and potentially more favorable economics. This development positions the company well for scaling its utility-scale solar operations, particularly in the U.S. market where the IRA incentives are driving significant growth in renewable energy investments.
Net funds from tax credit transfer reduced existing debt, further deleveraging balance sheet.
Fort Mill, South Carolina--(Newsfile Corp. - October 23, 2024) - Alternus Clean Energy, Inc. (NASDAQ: ALCE) ("Alternus"), a leading utility-scale transatlantic, clean energy independent power producer (IPP), has completed its first closing of a tax equity transaction, using the investment tax credit (ITC) structure introduced in the Inflation Reduction Act (IRA).
The transaction was completed by a wholly owned subsidiary of Alternus in the form of a tax credit transfer of approximately
All Proceeds from the tax credit transfer were used for transaction costs, and to pay down senior debt on these projects, further improving the overall equity position of the Alternus consolidated balance sheet.
Vincent Browne, CEO of Alternus, remarked "We're excited to have completed our first tax equity transaction, that can significantly reduce the capital required for our projects. We look forward to availing of additional transactions as we strive to advance the U.S. renewable energy industry, support job growth, and continue to promote local economic development.''
About Alternus Clean Energy:
Alternus is a transatlantic clean energy independent power producer. Headquartered in the United States, we currently develop, install, own, and operate utility scale solar parks in North America and Europe. Our highly motivated and dynamic team at Alternus have achieved rapid growth in recent years. Building on this, our goal is to reach 3GW of operating projects within five years through continued organic development activities and targeted strategic opportunities. Our vision is to become a leading provider of 24/7 clean energy delivering a sustainable future of renewable power with people and planet in harmony.
Forward-Looking Statements
Certain information contained in this release, including any information on the Company's plans or future financial or operating performance and other statements that express the Company's management's expectations or estimates of future performance, constitute forward-looking statements. When used in this notice, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions, as they relate to us or our management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company's management. Such statements are based on a number of estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the control of the Company. The Company cautions that such forward-looking statements involve known and unknown risks and other factors that may cause the actual financial results, performance or achievements of the Company to differ materially from the Company's estimated future results, performance or achievements expressed or implied by the forward-looking statements. These statements should not be relied upon as representing Alternus' assessments of any date after the date of this release. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Media Contact: ir@alternusenergy.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227527
FAQ
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