With the passage of the Inflation Reduction Act (IRA), certain renewable energy tax credits can now be transferred or sold by those generating eligible tax credits to qualified buyers, including private equity investors, seeking to purchase tax credits. Transferable energy tax credits provide a new and more efficient way for taxpayers to monetize these tax credits alongside tax equity structures, while providing a significant tax planning opportunity for private equity funds and their portfolio companies.

In this episode of The Drawdown, Chris Truitt, Partner and Transaction Tax Services Leader, welcomes Marty Karamon, Partner and Tax Credits & Incentives Advisory Leader, Will Billips, Tax Services Partner, Tim Doran, Tax Credits & Incentives Advisory Director, and David Mohimani, Tax Credits & Incentives Advisory Manager. Together, they discuss deal structuring alternatives for transferable energy tax credits and how the new rules are impacting the private equity industry.

Related Guidance

• Article: IRS Announces Notice 2024-36 and Round Two of Section 48C Allocations Timetable
• Webinar: The Developing Market for the Purchase and Sale of Clean Energy Tax Credits
• Webinar: Navigating the Impact: Inflation Reduction Act of 2022 Update
• Article: Factors to Consider When Seeking Cost Segregation and Section 179D Study Service Providers

Business interruption (BI) insurance is crucial for private equity firms, as it provides financial protection in the event of unforeseen disruptions to a portfolio company's operations. Interruption in business operations due to natural disasters, supply chain disruptions or cybersecurity breaches can have a significant financial impact to a fund’s bottom line. For private equity firms, business interruption insurance is not only a risk management tool but also a strategic asset that can safeguard their investments, maintain the trust of investors and protect the long-term value of their portfolio companies.

In this episode of The Drawdown, we welcome three members of Cherry Bekaert’s Forensic and Dispute Advisory Services team: Lori Smith, Partner and Practice Leader, and John Collier and J.C. Tuthill, Managing Directors. Together, they discuss:

• 1:28 - Business interruption insurance triggered upon damage to covered property at the premises
• 2:30 - Coverage and policy terms for funds and portfolio companies
• 4:25 - Calculating payment for types of business losses
• 11:00 - Dependent property coverage
• 12:55 - Next steps for fund managers

If you or your private equity firm have any questions about business interruption insurance or how to prepare for a disruptive event, please reach out to our Forensic & Dispute Advisory Services team.

On December 31, 2025, the current federal lifetime estate and gift tax exemption amount is scheduled to revert to pre-2018 limits, effectively reducing the tax benefit by 50%. This has the potential to greatly impact investment fund managers and other high-net-worth individuals. Without adequate and timely estate planning, these individuals may miss out on potentially millions of dollars in tax benefits.

In this episode of The Drawdown, Marci Spivey, Partner and Private Client Services Leader, welcomes Mike Kirkman, Partner and Estate, Gift and Trust Leader. Also joining the conversation is Clint Costa, Senior Wealth Strategist at Choreo, a wealth management firm and strategic alliance partner of Cherry Bekaert. Together, the team discusses how fund managers, can proactively plan with trusted advisors to protect their assets ahead of the exemption sunset.

Related Guidance

• Article: Use It or Lose It: Estate Tax Exemption “Sunset”
• Article: Federal Estate and Gift Tax Exemption Will Sunset After 2025: How to Prepare Now

About Choreo

Choreo, LLC is an investment adviser registered with the SEC. Registration as an investment adviser does not imply a certain level of skill or training of the adviser or its representatives. This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute audit, tax, consulting, business, financial, investment, insurance, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. Information has been obtained from a variety of sources believed to be reliable though not independently verified. Choreo, LLC its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person.