mismatch of developer and tax investor share of ITC

  • Bob_K
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24 Oct 2015 19:27 #3856 by Bob_K
Hello Support,

Working with a PV Leveraged Partnership Flip, I have assigned the tax investor 98% of the tax benefits pre-flip, and I have a 6 year IRR target date. The tax investor has also been assigned 90% of the ownership of the equity portion, and the cash flows correctly calculated this. Yet, the same cash flow results give the tax investor only 10% of the ITC amount. The cash flows correctly reported the 10% equity stake of the developer, but did calculate 90% of the ITC cash benefit for the developer, which is mistake, I believe. Is ther something wrong I could have done? I looked at the current manual, and I think correctly used the Finacial Parameters page.

the model is "Farm 98 2 TE IRR9 debt70.sam"

Thank you in aadvance for your help.

Bob

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  • Bob_K
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24 Oct 2015 19:30 #3857 by Bob_K
Hi, Im looking for clarification on the Leverage Partnership Flip. The cash flows give the tax investor only 10% of the ITC, when it should give them 90% of the ITC. Ondering if I did something wrong. Thankk you, Bob

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  • Paul Gilman
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27 Oct 2015 17:06 #3858 by Paul Gilman
Replied by Paul Gilman on topic mismatch of developer and tax investor share of ITC
Hi Bob,

Thank you for pointing out the possible bug. I confirmed your observation and we are investigating. I will let you know when we learn more.

Thank you for your patience.

Best regards,
Paul.

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  • Bob_K
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30 Oct 2015 16:44 #3859 by Bob_K
Thanks Paul,
Bob

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  • Bob_K
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06 Jan 2016 18:37 #3860 by Bob_K
Hi Paul,

Any progess on this issue?

Thank you,
Bob

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  • Paul Gilman
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06 Jan 2016 22:19 #3861 by Paul Gilman
Replied by Paul Gilman on topic mismatch of developer and tax investor share of ITC
Hi Bob,

Thank you for following up. This is a bug that affects both partnership flip models since SAM 2015.1.30 when we made a change to show "NaN" (not a number) instead of zero when a given set of assumptions did not have a mathematical solution for one or both of the partner IRR values.

This will be fixed in the next version of SAM, which we hope to release in the next few weeks.

Thank you for your patience.

Best regards,
Paul.

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