Olson Energy

The OEC team brings together a complete group of experienced professionals to validate engineering, oversee construction, and manage solar projects for our investors and lenders. From initial concept through final commissioning, we collaborate with developers and EPC companies to ensure that projects adhere to the highest standards for optimal annu... al production output to get the project completed. US tax law provides a variety of benefits to developers and owners of renewable energy projects. While these tax benefits can be very significant to a tax-paying entity, a non-taxed entity such as a city, state, university, municipal power company or other non-profit organization cannot benefit directly from these incentives. Olson Energy Corporation (OEC) has developed a unique financial strategy which enables tax-exempt and non-profit institutions to benefit indirectly from these incentives. The Olson Plan combines the traditional tax benefits available to renewable energy projects with the additional tax benefits of a charitable contribution. Under the Olson Plan, a project is initially owned by OEC and tax investors who receive the federal investment tax credit and depreciation benefits. The project is then donated as charitable contribution to the non-profit entity for additional tax benefits. To ensure that the commitment to donate the asset is enforceable, the transaction is structured as an option to purchase at nominal price determined as a small percentage of appraised fair market value. A long term agreement with an offtaker is required to ensure the facility valuation will maximize the tax benefit of the charitable contribution. Starting in the sixth year the non-profit entity owns the facility and its cash flow revenue. The non-profit may continue to contract O&M and administration of the facility to the original team or to other outside management, and continues to pay project debt, if any. Over the life of the solar facility, the non-profit will experience significant savings and a very low levelized ...Read More