Minnesota Flip

The Minnesota Flip is a business model designed to help local wind project owners with minimal tax appetite pair up with a larger entity that has a more substantial tax burden. Because the tax credits available to project owners are proportional to their level of ownership in the project, the tax motivated entity is the majority owner in the first ten years of production and pays a “management fee” to the local owner in lieu of production payments. Once the tax incentive period ends after year 10, the majority ownership of the project “flips” to the local owner, and the tax-motivated investor takes a minority share in the project. For more information, see “The Minnesota Flip” section of the Toolbox.