Mobility Portal Europe’s Post

“…Chancellor Olaf Scholz’s ruling coalition ditched a plan to buy the entire German unit of Tennet Holding BV’s power grid, after the cost proved too much for the government’s stretched finances. Discussions on a full sale by the Dutch state-owned grid operator to German development bank KfW have ended after more than a year of negotiations, Tennet said Thursday in a statement. The government in Berlin had hoped to accelerate grid investments and the energy transition in Europe’s largest economy through the deal, as it needs to link offshore wind power produced in the north with its industrial heartland in the south. But after years of crisis firefighting, policymakers are facing constraints on spending, with the deal at one point said to be valued at around €22 billion ($23.6 billion). Late last year, a court ruling on off-budget funds forced the government to recalibrate its fiscal plans, exacerbating the squeeze and leading to significant delays in the talks on the Tennet stake. Tennet has been exploring alternative plans to offload its German operations. Last month, it said a sale to private investors or a potential initial public offering are among options being considered if the deal falls through. It’s also possible Germany could still purchase a significant stake along with other investors, according to people familiar with the planning, who asked not to be identified as the discussions are confidential. […] Tennet said it remains fully committed to executing its large investment plans in both countries, backed by the Dutch state. “The federal government of Germany has informed the Dutch state that it cannot deliver on the planned transaction due to budgetary challenges,” according to the company’s statement. “The German government is committed to support such alternative solutions.” The failed sale leaves the Netherlands with a €1.6 billion hole in its 2024 budget, Dutch Finance Minister Steven van Weyenberg said in a letter to parliament. An additional solution is needed for Tennet’s short-term financing needs until an alternative is found, he added. The purchase was contested domestically for months within Scholz’s fractious three-party coalition, with Robert Habeck of the Greens, the economy minister and vice chancellor, pushing for a full purchase of the grid. The pro-business and fiscally hawkish Free Democrats — who generally support privatization of public assets — and Scholz’ Social Democrats had agreed that Germany would try to sell parts of the grid in a next step, with the goal to possibly reduce its stake to a blocking minority.”

The 125% Section 12B tax deduction is in its final year! Time is running out for individuals, companies, and trusts to take advantage of this enhanced tax benefit. Why act now? 🔹 The 125% deduction will soon disappear. 🔹 Deployment risk: Ensure your solar projects are up and running this financial year to qualify. Don't miss out! Invest now and let your solar projects generate both electricity and tax savings. Read on here: https://ow.ly/hn6e50RMX4q #TaxDeduction #Section12B BizNews

Clean energy investment tax credits are creating opportunities for tribes to partner with other businesses. Be sure you know the best way to maximize your benefits. #TaxCredits #tribes #CleanEnergy

The transferability option for federal solar tax credits is highlighted in today's blog post. This seems like business-friendly tax policy to me and unlikely to change under the new Administration, but let me know if you have other thoughts 🤔

Uncertainty over the business environment for the UK North Sea remains a significant concern for independent energy companies like Viaro Energy. The industry needs fiscal and political certainty to deliver affordable and secure energy, and protect the 100,000 jobs that are currently at risk due to the windfall tax. Viaro Energy CEO Francesco Mazzagatti recently spoke to the Financial Times about the impact this uncertainty is having on future plans: “One of the main drives to look into the UK was because as a small independent, we were looking to go into a country that was geopolitically stable and the tax regime was stable.” Click below to read the full article.  

Are you a project sponsor and have an interest in the potential changes to tax credit transferability for advanced energy in 2025? The incoming administration’s stance on taxes and finance will play a critical role in shaping the financing environment for advanced energy projects. While the Inflation Reduction Act (IRA) boosted advanced energy incentives, including provisions for tax credit transferability, it remains to be seen how much the incoming administration will alter or preserve these mechanisms. Here are a few items to consider: Tax Credit Transferability: The IRA’s tax credit transferability provision allows sponsors to sell their tax credits to other parties, enhancing liquidity and providing a broader range of financing options. It is expected the incoming administration will reduce corporate tax rates and therefore the demand of such transfers has potential to decline. The transferability provision is valuable for sponsors who lack sufficient tax liability to utilize the credits directly, enabling access to additional capital. Changes in Tax Policy: Again, the incoming administration is expected to lower corporate tax rates further, which could make these tax credits less valuable to corporations. A decrease in the value of tax credits could result in an even more selective pool of tax equity investors, making it more difficult for sponsors to secure financing for large-scale advanced projects. Private Financing and Investment: With the federal government potentially scaling back its support for advanced energy, sponsors may increasingly turn to private financing sources such as green bonds, private credit and corporate partnerships. Corporate demand for advanced energy and sustainability initiatives is expected to continue to spur investments in advanced projects, even if there are changes to the IRA. Still, sponsors will need to adjust to a potentially more challenging financing environment, especially if tax equity financing becomes more limited and tax credit demand declines. Futuron LLC advises sponsors on the advanced energy projects and supports deal origination and development. We look forward to discussing your needs. #advancedenergy #renewableenergy #innovation #datacenters #ai #financing #commercialrealestate

Exiting Section 12J? Mitigate Your Exit Tax With These Options! If you're looking to reduce your Section 12J exit tax, you have two routes: 1️⃣ Section 42 Roll-Over Relief: Defer your exit tax with a collective investment scheme. 2️⃣ Section 12B Solar Investment: Invest in solar to shield the tax consequence. For tax mitigation, Section 12B generally wins—you can reduce your tax liability to zero by investing just 21% of your Section 12J capital in a solar project, versus committing 100% for Section 42 roll-over relief. Plus, with Section 12B, you could get up to 90% of your investment back in the first year through SARS refunds and cash inflows. Learn more about your best options in our latest article. https://ow.ly/pNGL50Ry9ew BizNews #Section12J #Section12B #exittax #tax

Our private sector lawyers provide reactions to the autumn budget covering topics including: - Inheritance tax - Energy and Infrastructure - Manufacturing and Industrials Yesterday's budget shows a clear commitment by the UK Government to support the transition to electric vehicles (EVs). Our Head of Automotive and Senior Associate, Joe Davis, welcomed the incentives for EVs but cautioned that both EV manufacturing and the building of necessary charging infrastructure is crucial. From 6 April 2026, the 100% relief from inheritance tax in relation to agricultural and business assets will only apply to the first £1 million of such assets, with 50% relief available thereafter. Our Senior Associate in the private client team, Hannah Connors TEP, expands on this in our reaction below. Chancellor Reeves also announced funding for 11 new green hydrogen projects, which she said would be among the first commercial-scale projects in the world. Zoe Stollard (nee Raxter), Partner in our construction team, comments in our reaction below. For more on this, read our lawyers' ongoing reaction to the autumn budget here: https://bit.ly/3Uw6N6u #Budget2024 #PrivateSector #Agriculture #ElectricVehicle #InheritanceTax

Clear and refreshingly "unpolitical". This kind of assessment from afar can provide important input for domestic climate and #energytransition debates - which currently in Germany are very driven by party political considerations with view towards 2025 elections and individual business concerns. Also a great reminder from Laszlo Varro to anyone who thinks Germany is heading down a lonely road: "New obligations emerge from industrial decarbonization which realistically will require governments stepping in. Compared to other countries Germany has a more realistic assessment of the scale of the task and has shown remarkable willingness to face the difficulties. The transition in the frontrunning countries is reaching the hard to abate phase and guess what: the “hard’ is not going to be easy. The tough but honest debates in Germany might be a taste of things to come in other countries as well." Good input also for German Energy Agency (dena) congress next week. Hanne May Thanks for Benjamin Wehrmann for pointing the text to me (good to see that Clean Energy Wire | CLEW provides the basis for productive international debates) Elias Perabo Lars Grotewold

Biden-Harris Administration Announces $4 Billion in Tax Credits to Build Clean Energy Supply Chain, Drive Investments, and Lower Costs in Energy Communities. Biden-Harris Administration Announces $4 Billion in Tax Credits to Build Clean Energy Supply Chain, Drive Investments, and Lower Costs in Energy Communities http://ow.ly/UXKN105nPIe