GridZero Founder/President/CEO shares his partnership plans
GridZero Inc. is committed to building a pioneering Hydrogen-driven end-to-end zero emission business, incorporating the best proven products, technolgies and equipment. However, our proposed network of EVPowerHUBZ with many also featuring GZTruckHUBZ - will require substantial funding to turn into reality. To date we have self-funded our years of project development and reseaching products, systems and equipment, rendering them into viable business models then refining them.
​
GridZero understands that building the future transition to a zero emissions economy will be rooted in part by the capital made available from multiple sources, including one or more venture partners. In fact, we structured GridZero to allow for partners to join us in building various businesses that will all work seperately, yet with a comon goal. Companies like our sgreen energy solar and wind farms, hydrogen production,
and others.
​
We are working with our securites firm to develop a $25 million California Limited Partnership to acquire the land and build the initial five SuperHUBZ locations, exclusively for Accredited Investors. We hope to have it ready by late, 2024.
​
We may also develop tax-deductible investments like those common in the oil and gas industry. The Tax-Deductible Limited Partnerships (Tax Shelters) where the tax treatment of intangible drilling costs (IDC) are 100% deductible within the first year, still today. We will also seek out firms that build solar farms and lease them back for our green Hydrogen fuel production operations.
​
The many tax-deductible oil investment tax breaks offer numerous advantages unique to the oil and gas industry. In the age of zero emissions, it only makes sense that a similar tax strategy should be offered to drive private investment within the green energy sector. If a direct investment in an oil and gas drilling partnership can provide significant tax write-offs, while also providing the added benefit of consistent cash flow and return on investment potential. We feel it should apply equally to any scalable zero emissions green economy related partnership investment as well.
​
As an example, IDC costs are drilling expenses related to labor, fuel, chemicals, hauling, etc. They usually represent 85% of the total cost of a well and can be deducted 100% against taxable income in the first year. If a Partner invested $50,000 today in a project that had 85% of its costs in IDCs, you could elect to deduct $42,500 from your taxable income for 2024. If you are in the top 39.6% federal tax bracket this deduction could save you approximately $14,875 in federal income taxes. Even better, IDC deductions are available in the year the money was invested, even if the well does not start drilling until March 31 of the year following the contribution of capital.
​
In the context of our proposed zero emissions solar farms investment IDC means Intangible Development costs. This includes the solar panels, elevated canopy structures, and labor to install them. Costs that mirror the deductions of the oil and gas investment. Our partnerships would also benefit from any local, state, or federal tax incentives. The location solar farm would be leased back to GridZero for 10 years, the term of the partnership, generating stable cash flow for the Partners during the term to provide them a return on investment.
​
A similar structure can be designed for zero emission equipment or vehicle leasing partnerships.With this goal in mind, GridZero Partners, a proposed division of GridZero Inc. will develop three unique Tax-Deductible Limited Partnership group structures to offset its overall project development costs.
1) SolarFarm Partners, 2) Hydrogen Partners, and 3) Transport Partners.
​
Our Solar Farms represent the largest percentage of any total project costs and are attached to physical properties. Therefore, we intend to use separate Limited Partnerships (Partnerships) for each location in varying dollar amounts. The Partnership as owner of the farms, will receive all local, state, and federal tax credits or incentives available. Farms will be leased back to GridZero to operate and service for ten years, after which they are acquired for 25% of their original installation costs by us. Partners receive a stable lease income over the term, after receiving a 100% tax-deduction of their investment in the first year (as currently being designed by us subject to IRS and legal review).
​
Our Hydrogen and Transport Partnerships will each consist of 1,000 Units at $25,000 per unit to generate $25,000,000 in capital to fund equipment and vehicle purchases for multiple locations. They will appeal to a particular investor group. Partnership assets will be leased back to GridZero for seven years, after which they are acquired for fair market value. Partners earn a stable lease income and receive the tax-deductible advantages. At the end of the seven-year term, GridZero will also acquire all remaining leases and incorporate them directly into our operations.
​
The advantage for GridZero is that we will offset the cost of our projects by not having to spend equity capital or cash flow on our required solar farms, our water and hydrogen making equipment, our GH2 powered shuttles and ClubLimoLiner coaches. Lease costs are fully tax-deductible against our operating costs. We will use our equity capital, debt financing and proceeds from funding grants to acquire or lease land, build out our zero emissions network of off-grid interstate EVPowerHUBZ, GVTruckHUBZ, and related operations.
​
None of the above Partnerships are yet developed and no decision has been made as to their structure, unit value or proposed launch date. Stay tuned for more details.
​
​