Renewable Energy Tax Credits

By Banking and Financial Services, Business

The Inflation Reduction Act of 2022, Pub. L. No. 117-169, 136 Stat. 1818 (the “IRA”) provides businesses, including banks, credit unions, and other financial institutions, with an opportunity to reduce their tax liability by channeling investments into eligible renewable energy projects—simultaneously improving the economic and environmental condition of their communities.  Two of the IRA’s biggest opportunities for businesses are the production tax credit for electricity from renewables (the “PTC”) (26 U.S.C. § 45) and the investment tax credit for energy property (the “ITC”) (26 U.S.C. § 48).  Developers, lenders, and investors can use either, but generally not both, of these tax credits to defray the costs of completing and operating eligible renewable energy projects while reducing the amount of taxes that they owe. Read More

Electronic Loan Transactions under Maine’s Uniform Electronic Transactions Act

By Banking and Financial Services

In today’s digital age, electronic signatures have emerged as a significant consideration in commercial loan transactions. Maine’s Uniform Electronic Transactions Act (UETA) may provide a framework to permit electronic loan transactions. When it comes to the execution of various loan documents, including promissory notes, guaranty agreements, and security arrangements, among others, electronic signatures are generally permitted under both the UETA and the Uniform Commercial Code (UCC). While the law provides some flexibility, securing express written consent from all parties to the loan transaction prior to closing is strongly advised. However, control over electronic records, the requirements of which are outlined in the UETA, is essential for their validity and potential enforceability.

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Frequently Asked Questions (FAQs) About the Corporate Transparency Act

By Banking and Financial Services, Business, Corporate Transparency Act Resource Center, Software & Startups

This article answers common questions that companies and individuals have about the Corporate Transparency Act (“CTA”). Please note: these answers are general and may not apply to you. Please consult an attorney for advice regarding the CTA and how it may apply to you or your company.

The law and best practices relating to the CTA change frequently, and portions of this page may be outdated at the time that you read it. Read More

F.D.I.C. Requests that Banks Report Their Cryptocurrency-Related Activities

By Banking and Financial Services, Blockchain & Digital Assets, Intellectual Property, Software & Startups

The Federal Deposit Insurance Corporation (F.D.I.C.) has requested that all banks engaging in cryptocurrency-related activities notify the agency of those activities. The request came in the form of an April 7, 2022 letter, FIL-16-2022, to F.D.I.C.-supervised banks. In that letter, the F.D.I.C. summarizes its concerns regarding banks’ participation in cryptocurrency-related activities. Those concerns include the potentials for consumer confusion, risks to banks’ information technology and cybersecurity systems and money laundering. The F.D.I.C. also wrote that certain inherent characteristics of cryptocurrencies, including practical challenges with identifying digital assets’ ownership, raise unique questions about banks’ ability to ensure safety and soundness. Read More