Overview

This briefing from NCTM outlines some potential tax issues that may arise during a typical acquisition structure for photovoltaic plants.

In February 2007, the Italian Government approved a Decree with the criteria and arrangements to encourage the generation of electrical energy by means of solar photovoltaic conversion, offering a guaranteed feed-in tariff to make generation from photovoltaic plants competitive with conventional generation.

This new regulation has allowed Italy to become an interesting market for photovoltaic projects.

As soon as the market of photovoltaic plants developed, tax and legal advisors began working in close contact with the main actors involved in the business, which belong to the following three categories:

1) the developers (owning the rights, the authorisations, etc.);

2) the suppliers of the modules / constructors of the plants;

3) the investors.

The day-by-day tax practice has then encountered a number of tax topics to deal with. On the basis of the experience accumulated advising the actors of the business under discussion, we outline in the following some potential tax issues that may arise during a typical acquisition structure for photovoltaic plants.


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