Solar

Equity investments in solar projects offer a tax-efficient strategy to reduce both passive and active tax exposure. This approach reframes the investment focus from pre-tax to post-tax yield, using funds otherwise allocated to estimated tax payments to reduce exposure from otherwise tax-inefficient income streams.

By purchasing solar projects, investors can leverage depreciation, Investment Tax Credits, and cash flow to offset taxable passive and active income.

While the immediate cash flow may be modest, the tax savings, significantly enhances returns - especially for investors in high-tax states. Total returns will vary based on individual tax circumstances; for example, a high-income investor with passive gains in NYC could receive a 1.29X Y1 MOIC, net of fees, utilizing funds typically allocated to estimated tax payments.