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Solar Panel Farm8

LARGE PROJECT
CASE STUDY

Dual-Model Tax Strategy with $3.5M Investment Basket

A high-income LLC utilized HV-Solar’s Sale-Leaseback Model and EV Power Wheels’ Leveraged Model to create a powerful, tax-efficient investment strategy. The combined $3.5 million project, funded with just $1.75 million in capital, delivered immediate tax savings, structured passive income, and long-term capital efficiency through a fully managed, asset-backed platform.

Client Profile

An LLC investor based in New York, facing $12 million in capital gains and an expected tax liability of $2.4 million, sought a compliant and highly leveraged solution to reduce their exposure and generate income without tying up full capital.

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Investment Overview:

The client allocated capital equally between HV-Solar and EV Power Wheels projects, each valued at $850,000. With a combined investment of $1.75 million (leveraged structure) making the total project value of both projects $3.5 million, both deals were structured to deliver maximum tax benefits while earning a preferred 5% return.

  • HV-Solar: Sale-leaseback model

  • EV Power Wheels: Leveraged model

  • Funding type: Financed/leverage

  • Ownership & management: 100% passive

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Tax Benefits & Immediate Savings:

In Year 1, the combined investment delivered:

  • $1,225,000 in Federal Investment Tax Credits 

  • $1,068,375 in Federal Bonus Depreciation

  • $76,300 in State MACRS Depreciation

  • $175,000 in Guaranteed Lease Income

 

Total Year 1 tax and income benefits: $2,379,487
Net at-risk capital in Year 1: –$629,487

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Net ‘At Risk’ Capital & Cash Flow

With a combined investment of $1.75 million and total Year 1 tax and income benefits of $2,379,487, the investor effectively recouped more than their entire contribution in the first year, bringing their Net ‘At Risk’ capital to –$629,487.

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This outcome was driven by:

  • $1,225,000 in Federal Investment Tax Credits 

  • $1,068,375 in Federal Bonus Depreciation

  • $76,300 in State MACRS Depreciation

  • $175,000 in Year 1 Guaranteed Lease Income

 

With capital fully returned through tax benefits and income, the investor continues to earn passive cash flow over 20 years with no additional capital risk—positioning this strategy as both highly tax-efficient and income-generating.

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Long-Term Revenue & Financial Gains

After the front-loaded tax reduction, the investment continues to generate passive income across both portfolios. Over 20 years, the client is projected to receive $1,909,008 in total lease income, with preferred returns paid semiannually.

 

Combined with the initial tax benefits, this produces a total return of $3.72 million, more than 2.1x the contributed capital.

 

This blended approach offers optimized depreciation, capital preservation, and steady income—while maintaining full IRS compliance and operational simplicity.

Creative Working

Annie A.

"Pairing HV and EV let us reduce taxes immediately while preserving capital and earning steady returns, with none of the operational hassle."

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