Modern Commercial Capital’s foremost activity is financing equipment for business. Our clients look to our financial solutions to assist them in acquiring the equipment they need to stay competitive and to manage cost. Our specialty is to provide our clients with a custom solution to match a specific need whether it involves renewable energy technology, manufacturing & production equipment or office furniture & IT hardware & software.

Modern Commercial Capital provides lease financing solutions for renewable energy projects. Energy conversion to solar or wind helps business achieve energy independence and greatly reduces the cost of operations. Many of our clients enjoy incentives for renewable energy conversion such as tax, renewable energy and production credits as well as accelerated depreciation.

National interest in safe sustainable energy technologies is growing rapidly. With utility company restructuring taking place all over the country, the opportunity for customer choice of greener energy consumption has never been greater.

The American Recovery and Reinvestment Act of 2009 provisions for payments to persons/businesses that place in service specified energy property. The purpose of payment is to reimburse eligible applicants for a portion of the expense of the property.

Under the Act, the US Treasury will make payments for […property used in a trade or business held for the production of income] in amounts of 10% to 30% of the basis of the property. Application for payments is reviewed and paid by the US Treasury within 60 days from receipt of a complete application or the date of the property is placed into service whichever is later.

In addition to the above federal incentive, renewable energy projects can also benefit from the utilization of applicable state energy credits. Depending on the type of project, costs can greatly be reduced by implementing these credits into the ROI model.

The types of equipment and projects which qualify for these incentives programs include solar, wind, biomass, geothermal, hydropower, landfill gas, micro turbine, combined heat and power system facility (CHP).

Equipment leasing provides 100% financing for a business owner and all of the benefits and depreciation flows through to that owner in addition to the reduction in utility cost of operation. In contrast, renewable energy financing so far has taken place through the use of Power Purchase Agreements (PPA’s). Under a PPA, a typical arrangement involves an investor group and a property owner. The equipment is owned by the investor group under a PPA and is simply hosted by the property owner. PPA’s offer the owner guaranteed quantity of kilowatt hours per year at rates less than the local utility charges and they may also collect rent for hosting the investor group on its property. The PPA investor group benefits from the tax consequences of depreciation and receives all of the payments and credits described above.

Often equipment leasing can make your energy project a reality. Leasing provides the opportunity to not only go green, but do so in a way that is beneficial to your bottom line.

Depending on lease structure—it is possible to deduct 100% of the payments. Leasing reduces the expense that taxes have on a business.

Ask your CPA about tax oriented leases.

Equipment leasing provides the lessee with the greatest amount of flexibility in terms structure of a transaction. Lease term can range from 12-120 months, can have ‘open’ or ‘closed-ended’ purchase upon termination. Often, a lease only requires the first payment due upon lease commencement.

With over 17 years of experience in the industry, the professionals of Modern Commercial Capital will provide you a transaction specifically structured to meet your needs and it will be delivered in a timely professional manner, every time.