What is tax equity financing?CF
I'm curious if anyone has any experience with tax equity financing. From what I understand, the investor (bank) gives $ to the project developers. In return for this capital, the bank gets the rights to any tax incentives that the developer might have.
What I'm unsure of is this - does the bank get an actual equity stake in the project? Or, is it essentially debt that the bank is buying, so the bank receives the debt service payments + tax incentives? --- Does it just depend on the deal and there is no 'typical' way these work.
If someone could provide some insight on this, I'd be most appreciative. Sorry if my post is vague, I'm new to this.