Tax credits are often an important piece of financing a project, whether that project involves renewable energy, historic rehabilitation, manufacturing facilities, or commercial and residential real estate. Pierce Atwood’s attorneys have substantial experience with tax credit financing, including both state and federal new markets tax credits, historic rehabilitation tax credits, and renewable energy tax credits. We also have substantial experience with the relatively new federal opportunity zone. We regularly work with businesses and developers to utilize these programs in a variety of ways. Because Pierce Atwood is a multi-service law firm, our tax credit attorneys draw on the knowledge and experience of our other practice groups (e.g., Business, Real Estate, Environmental, and Energy) to successfully bring projects to a financial closing. We pride ourselves on working collaboratively with our clients to find practical, efficient, and creative ways to achieve our client’s goals.
Representative Experience
We assisted Advantage Capital Partners in organizing and establishing a NMTC-based pooled loan fund under the federal and State of Maine new markets tax credit programs. Through the pooled loan, Advantage increased its investment power and positioned itself to help more business grow. We assisted with the subsequent $10 million debt, convertible debt, and equity investment in a veterinary pharmaceutical company. We also assisted with a $27 million investment in a manufacturer producing merchandise displays systems.
Representation of Athens Energy and its sister company, Maine Woods Pellet Company, in connection with all aspects of the financing of a $38 million biomass electricity generation facility, including $31 million of new markets tax credit financing ($31 million of State of Maine allocation and $7.5 million of federal allocation) and the syndication of renewable energy investment tax credits (ITC).
We advised Burgess Biopower on all aspects of financing the redevelopment of a shuttered paper mill into a state-of-the-art 75 MW biomass power plant located in Berlin, New Hampshire, which will burn waste biomass and sell power to the grid. The financing involved several sources of funds, including $63.5 million of new markets tax credit financing with allocation from six CDEs. The project also involved a $90 million section 1603 cash grant in lieu of an investment tax credit or production tax credits. The balance of the project was financed by $200 million of rated bonds provided by a consortium of financial institutions. We also advised with respect to EPC agreement, off-take power purchase agreement with PSNH and all project related agreements.
Represented Cate Street Capital, Inc. in connection with acquisition, disposition, and financing of their portfolio of companies, including private placements, structured finance, tax advantaged finance, and traditional M&A activity. The Cate Street portfolio includes Red Desert (water reclamation facility); Sunlight Partners (solar technology development); Thermogen Industries (biocoal manufacturing); Purified Plastics (recycling and manufacturing facility); Burgess Biopower (75 MW renewable power generation facility) and Organic Nutrition Industries (renewable proteins).
We provided comprehensive representation of a renewable energy facilities developer in a series of tax exempt bond financings, a preferred stock and warrants PIPE, a private placement of common stock and five underwritten public offerings of common stock and convertible debt.
Represented the Capitol Center for the Arts in connection with the acquisition of, and financing for, the historic restoration of the Concord Theatre in Concord, New Hampshire. The project utilized $5.4 million in New Markets Tax Credit allocation. The theatre will act as a satellite location for smaller performances and events.
Representation of Capone Iron Corporation in a $10 million new markets tax credit financing for the construction of a manufacturing facility.
Assisting Cate Street’s subsidiary Newco Energy in development and $275 million new market tax credit and Section 1603 financing of its biomass plant in Berlin, New Hampshire.
Representation of a tax credit investor in connection with a new markets tax credit financing of a $10 million real estate development in Brunswick, Maine.
We represented the Downeast Institute for Applied Marine Research & Education, a nonprofit in Beals, Maine, with the financing of its $6.7 million expansion, including a $5 million new markets tax credit financing. The expansion will add laboratory, office, housing, storage and conference space, as well as making improvements to the existing hatchery (used to grow soft shell clams and other commercially important bivalves to restock depleted resources).
MoreWe have represented a nuclear power plant in New Hampshire on multiple property tax valuation matters, as well as on obtaining pollution control exemptions.
We assisted the Farnsworth Art Museum, located in Rockland, Maine, with a combined state and federal new markets tax credit financing, helping the museum to secure capital needed for critical repairs and improvements to the building. The NMTC investment has allowed the museum, which opened in 1948 and boasts a remarkable collection of over 15,000 objects, to stay open and continue welcoming more than 100,000 visitors annually.