What is an investment in "tax equity"?

What is tax equity? I am interested in a typical project finance type situation. How is this different than investing in normal equity? I assume there are tax benefits to investing in tax equity, but what? Thanks.

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Thanks for askijng your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

Ok heres the jist of this (also known as tax liens):

1. The goverment needs to colect taxes from delincuent people, they sell the debt or equity by the amount owed. Understand the goverment needs the money for them to function.

2. You as an investor purchase the debt for a number of months (years) depending on the state.

3. One of 2 things will happen, either the delincuent pays the taxes and the penalies and you recive that money from the goverment or the delincuent does not pay and you keep the property or object free and clear of debt.

Hope this helps

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