Tax Equity Co-Investment Platform
Propel your company forward by co-investing with Nelnet Renewable Energy in solar projects eligible for tax credits.
Co-invest your federal tax liability alongside ours to create shareholder value, lower your effective tax rate, and drive sustainability. We’re a leading tax equity investor in mid-size solar projects eligible for solar tax credits, as we’ve invested over $200 million of our own tax liability in these types of projects all over the country. This experience, coupled with our proven asset management capabilities, allows us to offer a unique co-investment platform that is based on value creation and exemplary customer service.
Why Solar Tax Equity Co-Investment?
Solar tax equity is a federally incentivized investment made by companies with federal tax liability. These are impact investments that significantly reduce greenhouse emissions and improve public health with cleaner air and water. But they make great financial sense, too.
Short Duration and Early Breakeven
Expect an investment horizon of 5-6 years.
Typical breakeven on investment capital within 8-16 months.
Convert tax liabilities into earning assets.
Target an estimated 12-15% after-tax return on investment.
Structured to Reduced Risk
Approximately 75% of your return is through a federal tax credit backed by the IRS.
The majority of capital is invested after the projects are fully constructed and generating power.
Limited Administrative Work
There's limited administrative work required on your part.
Accounting and tax reporting for co-investment funds are prepared by Nelnet’s experienced professionals.
Co-Invest With a Manager You Can Trust
We stand behind our tax credit funds by investing our own capital alongside our co-investor partners. We serve as both an investor and a manager, leveraging our asset management group that manages $1.5 billion of other third-party invested assets to mitigate risks and achieve expected returns.
Impact Investment Reporting
Looking for ways to enhance your company’s environmental, social, and governance (ESG) commitments? Nelnet works with your internal team to maximize your investment’s impact across multiple departments.
Co-Invest with a Trusted Partner
Redirecting federal tax liability into a solar tax credit investment is a seamless process when you co-invest with us – due to our tax equity expertise, material amount of capital invested, and seamless investment platform.Contact Us Today
Benefits of Tax Equity Co-Investing with Nelnet
Socially good. Financially smart. Seamless experience.Be intentional with your tax dollars. By redirecting your company’s federal tax liability into a solar tax credit investment, you can support clean energy projects that advance your company’s sustainability and environmental goals. Choosing to co-invest with Nelnet Renewable Energy – a trusted partner with tax equity expertise – offers the benefit of a simple, seamless experience.
- Dedicated project origination, due diligence, and underwriting teams.
- Full suite of asset management services for the duration of your investment.
- Strategic opportunity to invest in an underserved market segment with anticipated above-market returns.
- Co-investment alongside Nelnet, Inc. (NYSE: NNI) means minimal additional headcount or administrative budget for you.
- Nelnet’s alignment with our co-investors – as Nelnet has a material amount of capital invested alongside our partners.
- GAAP accounting and tax reporting is provided for the co-investment fund throughout the investment cycle by Nelnet’s experienced professionals.
- ESG and Impact Investment reporting for co-investors may be provided by Nelnet’s Corporate Sustainability team.
Simplify federal tax credit purchasing through our transferred tax credit platform.
The Inflation Reduction Act created an alternative to traditional tax equity investing for corporations that allows them to lower their federal tax liabilities and reduce transaction costs with a simplified process: purchasing transferred tax credits at a discount to par. Tax credits are transferred, or sold via a purchase sale agreement, without having to make an underlying investment. While the yields for transferred credits are lower than for traditional tax equity investing, transferred credits offer interested corporate investors:
- No investing in an underlying partnership.
- Increased cash flow.
- Reduced transaction costs.
- A lower effective tax rate.
- A streamlined investment and internal approval process.
- An enhanced company image.
Nelnet’s Total Solar Tax Equity Portfolio
Nelnet Renewable Energy is a leading, trusted partner for your sustainability and investment efforts, with over $313 million of tax equity under management between us and our co-investment partners to date. Our current tax equity investments span 19 states and over 252 solar projects, powering nearly 118,000 homes each year.
Our Co-Investor Relations Team
Learn more about the team that’s been leading Nelnet Renewable Energy’s successful solar tax equity investments and asset management group. Talk with us and explore whether solar tax equity co-investing may be a good fit for you and your business.
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