Forbes Article – Tax Equity And ESG Investing: The Best Of Both Worlds

November 9, 2020
ESG Perspective and Insights

By George Strobel, Forbes Financial Council Member

Many people have heard of environmental, social and governance (ESG) investing. To a much lesser degree, investors have heard of tax credits and tax equity or tax credit investing. And even fewer investors are familiar with how to utilize tax credits or tax equity investing to accomplish their ESG goals, satisfy sustainability initiatives and mitigate their tax liability.

More importantly, with tax equity investing, ESG criteria and ESG impact can be quantified. Yes, you can direct how your tax dollars are to be used and measure their environmental and social impact. You can give your money a mission.

Tax Credits Background

Tax credits were created by the government to incentivize investment in areas such as renewable energy, historic rehabilitation and affordable housing by offering investors in these activities a dollar-for-dollar reduction in their tax liability. Corporations, financial institutions and insurance companies have long used tax credits to mitigate their federal and state tax liability while providing much needed capital for projects promoting clean energy, conveniently located quality workforce housing and historic renovations in communities across the country. Investments in these types of activities, where the primary return to the investor is the tax attributes of the investment, is referred to as tax equity investing.

Read the full article here.

Related Posts

New Incentive in Georgia Creates Solution for State Tax Deduction Limitation

New Incentive in Georgia Creates Solution for State Tax Deduction Limitation

By Ryan Degnan, Senior Financial Operations Analyst Georgia legislators have created a new incentive that can reduce federal tax liability. Georgia taxpayers can now benefit from an elective entity-level tax […]

Read More

Perspective and Insights Research

ACORE Launches New Program to “Accelerate” DEI Within the Renewable Sector

ACORE Launches New Program to “Accelerate” DEI Within the Renewable Sector

The Accelerate membership program is made possible by founding support from Amazon Web Services and Berkshire Hathaway Energy Foundation, and is sponsored by BayWa r.e. and Monarch Private Capital […]

Read More

Company Announcements ESG Renewable Energy

Georgia State Tax Planning

Georgia State Tax Planning

As we approach the final tax return filing deadline for individual and corporate taxpayers, there is increased activity in the market for Georgia film tax credits as well as Georgia […]

Read More

Affordable Housing Film Perspective and Insights

See More News

Contact us for more information about ESG Investing, state and federal tax credits.