Tax Credit Insurance

Protection against loss of anticipated clean energy tax credits

Investors and developers of clean energy projects need tax credit protection

Renewable energy development financing is often contingent on tax credit eligibility. The U.S. Inflation Reduction Act (IRA) is fueling investments in clean energy projects with the help of tax credits. While the transferability of these tax credits opens the market to a broader group of investors, it introduces risk if tax credits are successfully challenged. This can threaten a project’s profitability and financially burden the buyers of tax credits.

Because the demand for tax credit insurance far exceeds the supply, there is a pressing need for more insurance capacity.

Harry Ballan

Munich Re

Head of Tax Insurance

Munich Re Group¹can help put developers, investors and buyers of tax credits in this fast-expanding market at ease, and help brokers secure insurance capacity with best-in-class execution and underwriting excellence.

What are the risks?

We provide investors, developers and buyers of Investment Tax Credits (ITCs) and Production Tax Credits (PTCs) policies that insure the tax credits against reduction as a result of a successful challenge from US taxing authorities, or from recapture.

Coverage protects against the following challenges:

Disqualification of the tax credits, in whole or in part, as a result of a successful challenge by taxing authorities
Valuation and cost segregation
Partnership and legal structure
Transferability, recapture and other issues

Benefits for clients

Risk transfer for the loss of anticipated tax credits if they are successfully challenged
A reliable partner helping to navigate the complex legal and regulatory tax credit landscape
Peace of mind by securing your investments in clean tech projects against reduction or recapture

Why choose Munich Re Group?

Munich Re Group drives sustainable business as a trusted partner and market leader in tax credit insurance, boasting a unique expertise in tax credit regulation as well as clean technologies.

Unmatched expertise in the complex tax credit legal and regulatory landscape

Superior execution, as well as underwriting and claims excellence

Strong balance sheet and financial stability with AA rating

140 years of experience in renewable energy products and solutions

¹The insurance cover is underwritten by a primary insurance carrier of Munich Re Group, which is an S&P AA rated international insurance company.

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