The IRS released important guidance for developers of carbon capture projects that qualify for carbon sequestration tax credits under section 45Q of the Internal Revenue Code on February 19, 2020, saying that such projects will be considered to have begun construction for purposes of qualifying for the credit if their owner commences “physical work of a significant nature,” or pays or incurs (according to its method of accounting) at least 5% of the total […]

Under a completion guaranty, sometimes referred to as a “cost overrun guaranty,” the guarantor typically guarantees any excess of the cost of completing construction over the portion of the construction loan allocated to funding construction costs.

The lender will usually have all or some of the following three remedies: (i) requiring the guarantor to complete construction, in which case the guarantor will be entitled to draw undisbursed amounts of the construction loan allocated to construction costs, […]