Global Project, Energy and Infrastructure Finance partner Allan Marks spoke on the Proximo Infra podcast about US infrastructure and the prospects for the Biden administration’s $1.3 trillion Build Back Better Bill, including the portions earmarked for clean energy initiatives.
Mr. Marks discussed extending investment tax credits (ITCs) and production tax credits (PTCs) for wind and solar power projects, the potential refundability of tax credits, and the impact on the tax equity market. He explained how the proposed expansion of these programs would benefit other clean energy initiatives, including clean hydrogen, energy storage, the electrification of the transportation sector, and 5G broadband connectivity. Nuclear power, he added, is also favored in the bill and could benefit.
Mr. Marks also examined the correlation of public and private infrastructure spending. He added that New York state, in particular, has been aggressively encouraging renewable energy investments, including in offshore wind. The podcast episode also touches on public-private partnerships (“P3s”). Areas that have been challenging for private investors include underserved urban communities and rural communities, which suffer from a digital divide. P3s, he noted, could incentivize investment in these areas.
