Sep. 23 at 8:24 PM
$ELLO Ellomay Capital to sell tax credits of Texas solar projects for
$19M
Ellomay Capita announced that the company has successfully entered into an agreement for the sale and transfer of Investment Tax Credit, or ITCs, linked to its Fairfield, Malakoff, Mexia and Talco solar projects, all located in the State of Texas. Through this transaction, the company expects to receive approximately
$19M from the sale of Investment Tax Credits, representing approximately 32% of the expected total portfolio costs. The sale is facilitated under the Inflation Reduction Act's new transferability provisions, allowing Ellomay to retain 100% of the operating profits from these projects.
Funds from the sale of the ITCs generated from a project will be disbursed after such project is placed in service and meets the applicable requirements. The company expects the Fairfield and Malakoff projects to be placed in service by the end of Q4, and the Mexia and Talco projects to be placed in service by the end of Q2 2025. The agreement includes customary indemnification obligations, including in connection with certain continued eligibility requirements and scope of the ITCs, for which the company provided a guarantee to the purchaser of the ITCs.
