The past few years have been a time of change and evolution for Foss & Company. The tax equity provider has become a force in US renewables project finance and is planning new 2025 launches. By Alison Healey
San Francisco-based Foss & Company was founded in 1983 as an institutional investment fund sponsor focused on finding accessible and efficient investment solutions to meet clients’ tax planning needs.
Since 1983, Foss has navigated the world of tax credit investment, working with institutional clients to come up with low-risk, sustainable options with predictable risk-adjusted returns and raising more than US$8bn in equity.
Foss & Company has representatives across the US, assisting both national and local partners and striving to provide corporate investors access to federal and state tax credit-driven investments.
Bryen Alperin joined Foss & Company in November 2017 and became a shareholder in 2023, based in the Denver office. As a managing director he leads all aspects of the investment, origination, and asset management process for renewable energy and sustainability funds.
Prior to joining Foss he worked in commercial banking and led debt financing for a broad range of middle market businesses and commercial projects.
With the implementation of the Inflation Reduction Act (IRA), transferable tax credits have provided developers with a tool to monetise tax benefits by transferring them to investors or entities with significant tax liabilities.
The process offers developers upfront capital and presents an opportunity for investors seeking impactful projects and attractive returns. It also opens doors for those that have not previously worked within the tax credit space. Foss has become an active participant in this market.
“The Inflation Reduction Act has been a game-changer in the renewable energy sector, fundamentally reshaping how tax credits are utilised and creating new opportunities for both developers and investors,” Alperin explained.
“For Foss & Company, the IRA has driven significant shifts in our approach to deal structuring. These changes have enabled us to deliver more tailored financial solutions, helping our clients maximise returns while driving sustainable growth in the renewable energy sector. One of the first changes was that standalone battery storage became eligible for investment tax credits. We immediately began investing in these projects, as we see them as an excellent complement to our portfolios.
"The introduction of transferability provisions also created a new avenue for monetising tax credits, allowing us to craft more flexible and innovative solutions for our clients, and vastly expanding the pool of interested investors. This flexibility has not only expanded our involvement in traditional renewable energy projects but also allowed us to explore newer technologies like advanced manufacturing, renewable natural gas, and hydrogen fuel cells.
"We have largely done this through hybrid structures that involve both a tax equity investment and a transferable tax credit sale. It also has included various forms of standalone transferable credit sales.”
The emergence of the tax credit transfer market has opened new avenues for financing renewable energy projects, and Foss has been at the forefront of developing structures to capitalise on these opportunities.
“Our innovative structures not only reduce complexity but also position our clients ahead of the competition in securing financing for cutting-edge renewable energy technologies,” Alperin said.
“We have streamlined the documentation process for tax credit transfers, reducing the time and complexity typically associated with these transactions. This has made tax credit monetisation more accessible and efficient for developers and investors alike.
"Additionally, Foss has introduced bespoke transaction structures designed to optimise capital flows and address specific client needs. For instance, we’ve developed hybrid structures that combine elements of traditional tax equity partnerships with transferable credit sales. These innovations not only maximise financial outcomes but also ensure compliance with the evolving regulatory framework.”
As 2024 is winding down, Foss’s transaction volume reflects the growing influence of tax credit transfers. While final numbers will depend on the completion of several Q4 transactions, Alperin estimates that approximately 55% of its renewable energy tax credit activity this year will involve transfers. “This shift highlights the increasing demand for flexible funding mechanisms and mirrors the overall trajectory of the renewables market toward more adaptable financing solutions,” he said.
Looking ahead to 2025, Foss anticipates continued evolution in the tax credit transfer market, with increasing standardisation and a broader range of participants entering the space, Alperin said. He also expects a greater emphasis on technologies that contribute to grid reliability and decarbonisation, such as hydrogen and advanced energy storage solutions.
“Our focus will remain on helping clients navigate these complexities while leveraging the IRA’s provisions to maximise financial and environmental impact,” Alperin added.
In terms of key attributes that differentiate Foss from some of the other firms in the renewables tax credit space, Alperin said Foss & Company distinguishes itself through a combination of deep expertise, a long-standing history, and a commitment to innovation.
“With over 40 years of experience in the tax credit space, we have developed a reputation for being both trusted advisers and creative problem-solvers,” Alperin said. “Our proactive engagement with new policies and technologies not only allows us to stay ahead but ensures our clients have access to opportunities that optimise their financial outcomes and align with their sustainability goals.
"Additionally, our extensive network of investors, project developers, and industry partners enables us to deliver bespoke solutions tailored to the unique needs of each transaction.”
“What truly sets Foss apart is our ability to stay ahead of market trends. We actively engage with emerging technologies and evolving financing structures, ensuring our clients benefit from cutting-edge approaches,” Alperin explained.
“Additionally, our hands-on, one-stop-shop approach ensures that we are deeply involved in every stage of a project, from initial structuring to closing and beyond. This combination of experience, innovation, and client-centric focus has solidified our position as a leader in the renewables tax credit market.”
One of the most innovative transactions Foss completed in 2024 was its investment in a merchant standalone battery storage project. “This deal utilised a hybrid structure that combined a traditional tax equity partnership with a transferable tax credit sale,” Alperin explained.
“This transaction serves as a blueprint for how we can help clients capitalise on emerging opportunities in an increasingly complex energy landscape, highlighting our ability to adapt and innovate.
"The complexity of the project required Foss to work closely with both the developer and investors to align objectives and optimise the financial model. What set this transaction apart was our ability to derisk the project’s cashflow through unique structuring elements, such as credit enhancements and various forms of priority cash distributions.
"The successful execution of this deal not only showcased Foss’s technical expertise but also demonstrated our ability to adapt to the rapidly changing dynamics of the renewable energy market.”
Foss has supported Texas-based battery storage developer Plus Power multiple times, closing on tax equity investments for its 200MW, two-hour duration Anemoi battery energy storage system and 300MW, two-hour duration Rodeo Ranch project, both in Texas.
In another key transaction Foss provided tax equity for Pivot Energy’s 90MW portfolio of distributed generation solar projects across multiple states. The portfolio comprised more than 40 solar projects under power purchase agreements with commercial clients, residents, and nearly 1,200 low-to-moderate income households in New York, Illinois, Colorado, Minnesota, California and New Jersey.
In 2025 Foss is looking forward to rolling out several new platforms designed to address the growing demand for innovative tax equity solutions. “These platforms not only address immediate market needs but are designed to support long-term scalability and resilience for developers and investors in a dynamic policy and market landscape,” Alperin said.
One key initiative is a new tax equity fund focused on production tax credits, specifically targeting utility-scale wind projects. “This fund is particularly unique because it offers a hybrid option, allowing investors the flexibility to either retain or sell the tax credits they are allocated over a 10-year period,” Alperin said.
“This adaptability is made possible with the IRA’s transferability provisions and provides a customisable solution for a diverse investor base.” The firm is also launching partnership investment structures for renewable energy projects, including a preferred equity structure.
“These structures aim to bridge the gap between traditional tax equity financing and more flexible capital solutions, providing developers with greater access to funding while offering investors a risk-adjusted return profile. These initiatives underscore Foss’s commitment to driving innovation in renewable energy financing,” Alperin added.
Alperin is confident about the future of tax equity for renewables, even in the face of uncertainty linked to the second presidency of Donald Trump. “The presidential election has the potential to influence federal energy policy, but Foss is well prepared to navigate these uncertainties,” Alperin explained.
“Our team closely monitors regulatory and policy developments, enabling us to proactively adjust our strategies and ensure that our clients remain positioned for success. For example, when the IRA introduced new transferability provisions, Foss quickly adapted our strategies, demonstrating our ability to pivot in response to regulatory shifts.
"Additionally, in our tax equity investments, we structure deals to mitigate the potential impact of changes to the federal tax rate on investment returns. We also leverage tools like tax insurance to protect against risks such as changes in law or policy.
"Beyond these technical adjustments, we engage in scenario planning to anticipate various outcomes and advise our clients on the best course of action under different policy environments. Regardless of the election’s outcome, our focus remains on providing stability and value for our clients in a dynamic policy landscape.”
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