It is difficult to address the project finance sector without touching upon the real and anticipated effects of the COVID-19 pandemic.Tax equity providers may be in short supply, as those entities need to have considerable tax appetite to monetize tax credits.One interesting outcome is that the world has gotten a feel for what greenhouse gas emissions could look like in a world where the public at large is not commuting to work or traveling.
Taxpayers often look for opportunities to sell a property they are no longer interested in and purchasing a new property. Many will take advantage of a §1031 tax-deferred real estate exchange.However, according to the Internal Revenue Service Revenue Procedure 2000‑37, taxpayers can also consider a reverse exchange.
A lot of capital continues to come into the U.S. market, with a huge focus on energy and infrastructure assets.We are also seeing U.S. developers and finance companies looking across the border into Canada, and Latin America in the hunt for yield.It certainly seems that from both a lender and institutional investor perspective, there are more new names coming in than are going out. The space is demonstrably growing.