Transmission Tax Insurance for Clean Energy Projects - Alliant Insurance Services
Mar 19, 2026
James Chenoweth, Managing Director at Alliant and tax lawyer who insures tax positions for energy and infrastructure deals. He explains tax insurance basics and who uses it. Short takes cover what risks are insurable, how pricing and underwriting work, FEOC uncertainty, which technologies drive demand, and why regions like Texas lead large projects.
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Buy Insurance When Financing Relies On Tax Benefits
- Use tax insurance when a financing partner (often tax equity or a lender) conditions their participation on tax attributes being certain.
- James says these situations commonly arise with tax credits, large bonus depreciation, or cost segregation in big projects.
Insurers Rely On Counsel Probability Opinions
- Insurability hinges on whether outside counsel believes the taxpayer's position would probably win in court.
- James compares this to pollution or builder's risk underwriting where a specialist's report drives insurer comfort.
Typical Tax Risks For Clean Energy Projects
- Common insurable tax risks include qualification for credits, recapture events, and above-project structuring that unintentionally taints credits.
- James cites carbon capture leaks and entity-structure mistakes as concrete recapture or qualification exposures.