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New Energy Risk (NER), a specialist managing general underwriter under Paragon Insurance Group, has completed its first tax credit insurance transaction, signaling the company’s expansion into one of the fastest-growing intersections of tax and clean energy finance.
The policy, placed in partnership with Alliant Insurance Services, underwrites a utility-scale solar project in Texas that will power a large data center. The transaction highlights the rising role of renewable energy projects in meeting the surging electricity demands of the U.S. digital economy, while simultaneously aligning with corporate sustainability mandates.
Tax credit insurance has emerged as a critical instrument since the Inflation Reduction Act of 2022 expanded transferability of Section 45 and 48 credits. By making credits tradable, the Act broadened the investor pool but also introduced new layers of risk, from technology performance to compliance with IRS rules. Insurance solutions like NER’s provide investors with assurance that tax benefits will remain valid, helping projects secure financing at scale.
George Schulz, Chief Executive Officer of NER, described the deal as a “logical extension” of the firm’s clean-energy risk platform, emphasizing its ability to combine tax and technology underwriting. Kevin Broich, Executive Underwriter for Tax, pointed to evolving IRS guidance and legislative clarity, particularly under the so-called “One Big Beautiful Bill Act,” as stabilizing the policy environment for tax credit markets.
Industry observers note that as renewable energy financing grows more complex, tax credit insurance is shifting from a niche tool to a mainstream requirement. For institutional investors and lenders, it mitigates exposure to recapture risk and validates the durability of federal incentives.
By entering the tax insurance space, NER is positioning itself at the convergence of tax law, financial structuring, and clean energy policy, a space expected to see exponential growth as data centers, electrification, and decarbonization strategies drive energy demand.
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