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  "documentTitle": "Sunrun Inc. (RUN)",
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  "authorName": "Carson C. Block",
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      "text": "The RUN Partnership Flips are designed to allow RUN to monetize multiple tax benefits of owning PV Systems even though RUN does not have any taxable income.",
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      "text": "First, RUN transfers the equipment and the PPA to the partnership.\nThen, as part of the transfer, RUN contractually separates the PPA cash flows from the ITC.\nRUN buys substantially all of PPA cash flows from the fund, while the Tax Equity Investor buys a partnership stake that is allocated substantially all of the ITC and other tax benefits.",
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      "kind": "paragraph",
      "text": "RUN procures tens of thousands of PV Systems every year for its PPA channel. Because RUN does not have sufficient capital to pay for all these PV Systems, it finances the systems in captive subsidiaries that elect to be taxed as partnerships. The partnerships sell Tax Equity interests to unrelated third parties (large C-corporations) and the Sponsor Equity is retained by RUN and pledged to secure warehouse facilities and ABS.",
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      "kind": "paragraph",
      "text": "Below is a simplified diagram of the Partnership Flip mechanics:",
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      "kind": "paragraph",
      "text": "The RUN Partnership Flips are designed to allow RUN to monetize multiple tax benefits of owning PV Systems even though RUN does not have any taxable income. The Partnership Flip transaction is one in which a US partnership has asymmetric allocations of cash flows, tax credits and partnership taxable income / losses to different partners at different periods in the partnership's life. RUN's partnerships do this, selling partnership stakes to C-corporations at a price that provides the buyer a negotiated return for essentially risk-free allocations (i.e., tax credits and depreciation).",
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      "kind": "title",
      "text": "Appendix A: How RUN's Partnership Flips Work",
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