While the renewable energy sector awaits further guidance regarding restrictions on prohibited foreign entities (PFEs), tax insurance markets are finding ways to get deals done in the meantime, Brown & Brown’s Corey Lewis said.

“We’re seeing at least some tax insurance markets be amenable to not providing fulsome coverage today or upfront but, with the right potential work product in place today, conditional coverage where coverage is provided for the PFE or ownership aspect of it, but that coverage is bracketed and conditional upon a bringdown of that memo or opinion within, let’s say, 60 or 90 days of when guidance ultimately comes out,” Lewis, who serves as global head of tax insurance for the Florida-based insurance brokerage and risk management firm, said on Infralogic’s Crossroads podcast.

“The insurers are able to get their arms around the risk and get comfortable providing fulsome coverage … that’s no longer conditional,” he continued. “While it’s not as ideal as having fulsome coverage today, what it does is it provides a path to fulsome coverage in the future, and it provides cost certainty.”

Lewis noted that Brown & Brown is seeing an increase in the use of technology-neutral Section 48E Clean Electricity Investment Credits.

“The vast majority of the opportunities that the financing counterparties in the renewable energy space will ultimately see are those that are 48E, where FEOC is going to be implicated and be a part of the discussion,” he said.

Lewis also discussed the impact of the upcoming US mid-term elections.

“The results of the election definitely can and will have a significant impact on the renewable energy industry,” he said.

Lewis previously appeared on the Crossroads podcast in August 2023.

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