What is Clean Technology?
Clean Technologies are technologies that:
- Use energy, water and raw materials and other inputs more efficiently and productively,
- Create less waste or toxicity
- Deliver equal or superior performance, and
- Improve customer profitability, through cost reduction and/or increased revenues,
Such technologies are found in a broad range of industries, including energy, water, manufacturing, advanced materials, and transportation. Examples of Clean Technologies are wind and solar energy, water filtration, industrial process controls and hybrid electric vehicles.
What are Real Estate Investment Trusts (REITs)?
Real estate investment trusts, known as REITs, are entities that invest in different kinds of real estate or real estate related assets, including shopping centers, office buildings, hotels, and mortgages secured by real estate. There are basically three types of REITS:
- Equity REITS, the most common type of REIT, invest in or own real estate and make money for investors from the rents they collect;
- Mortgage REITS lend money to owners and developers or invest in financial instruments secured by mortgages on real estate; and
- Hybrid REITS are a combination of equity and mortgage REITS.
The Internal Revenue Code lists the conditions a company must meet to qualify as a REIT. For example, the company must pay 90% of its taxable income to shareholders every year. It must also invest at least 75% of its total assets in real estate and generate 75% or more of its gross income from investments in or mortgages on real property.
- Investing in real estate and real estate investment trusts (REITs) involve special risk, as such, limited liquidity, changes in tax laws, tenant turnover or defaults, competition, casualty losses, and use of leverage. Real estate values may fluctuate based on economic and other factors. An investment in real estate or REITs may not be suitable for all investors and there are no assurances that the investment objectives of any real estate program will be attained.
What are Equipment Leasing Funds?
Direct-participation equipment lease investments allows the investor to hold a diverse portfolio of hard equipment assets leased to a number of business entities.
Because profits and losses flow directly to investors in a direct participation investment, double taxation can be avoided. Direct participation allows a passthrough of cash distributions and the tax advantages as may be associated with that investment. Direct pass-through of profits and losses is the most outstanding characteristic of direct participation-making possible the tax advantages and higher yields.
An investor in an equipment lease direct participation investment is in an investment partnership where the investor owns a security interest that represents an ownership share in what is often described as a hard asset.
- May not be suitable for all investors
- Redemption may occur at more or less than original amount invested
- There is potential illiquidity and are subject to special risks
- There are no assurances that the investment objectives of any real estate program will be attained
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