Investment Opportunity

Key Features:

- - - - 100% Tax Deduction Against Taxes-Owing
        
        7% Minimum Annual Dividend Distribution
        
        Investing In Mature, Proven Technology
        
        Reduction In Greenhouse Gas Emissions – Contributing To A Cleaner World
        
        Liquidity Option Within 18-Months

Tax Deduction

Of the gross proceeds of the Offering, an initial allocation (7.5%) is used to pay the Partnership’s operating, administrative and maintenance expenses that do not constitute CRCE, but which are expected to be fully deductible for the pertinent tax year. The balance of the gross proceeds (92.5%) are used to pay the “at risk development” costs for the project(s), including preliminary engineering work and feasibility studies. Up to 100% of these expenses are expected to qualify as CRCE. Therefore, all of the gross proceeds from a Limited Partnership Offering are expected to be fully tax-deductible against taxes owing.

Annual Dividend

The Limited Partnership will pay out a targeted, tax-efficient annual distribution in the form of a dividend targeted at a of minimum 7% (1.75% payable quarterly) to investors. The distribution will be paid from the profits of the projects. Dividend income receives a more favourable tax treatment than interest income.

Structure – Flow-Through Limited Partnership

AI Renewable finances clean and renewable energy projects by way of a Flow-Through Limited Partnership structure.

A flow-through (pass-through) entity is a legal business entity that passes income and eligible expenses on to the owners and/or investors of the business.
Flow-through entities are a common device used to limit taxation by avoiding double taxation.
With flow-through entities, the income is taxed only at the owner’s individual tax rate for ordinary income.

Limited Partnerships consist of:

General Partner, who manages the business and has unlimited personal liability for the debts and obligations of the Limited Partnership, and
Limited Partners, who have limited liability and are shielded to the extent of their investment but cannot participate in management.

Our limited partnerships are suited to individual, high net worth investors, who seek a steady, reliable cash flow, in an investment that tends to have a low correlation to the market. The tax-efficient nature of the money raised provides lower-cost capital to fund project development.

Strategy

To achieve its investment objectives, the Partnership either directly or through one or more special purpose vehicles, will seek to:

finance “Canadian renewable and conservation expenses” (“CRCE”) under Projects pursuant to various Canadian Federal and Provincial programs that encourage the development of renewable energy and energy-efficient projects in Canada, including CHP, solar, geothermal and other such energy-efficient projects
acquire economic interests, either directly or indirectly, in Projects and/or Energy Contracts held by project developers and/or special purpose vehicles other than the fund manager or its affiliates;

For projects that pass the feasibility study, AI Renewable will look to enter into a CHP Energy Service Agreement (“ESA”) with creditworthy customers. The energy generated by the Projects will be purchased by customers at a discounted rate from their current cost per energy bill, for a fixed term.