How an Investment Grade Seller Unlocked the IG Premium for ITCs
Overview
A Fortune 500 energy company with an investment grade (IG) credit rating came to Reunion with $45M in §48 ITCs and a clear goal: maximize cash proceeds without a drawn-out process.
Reunion had market intelligence which suggested that an investment grade seller could command a premium in the market if matched with the right buyer — and we ran a process that delivered.
$0.95
Gross Price
3 Days
To agree on key terms
See the real-time tax credit transfer pricing, terms, and market intelligence that helped this seller close.
A First-Time Seller with a Clear Goal
The Deal
$40–50M
§48 Investment Tax Credits
Utility-scale battery storage 2024 tax year
The Seller
- Fortune 500 energy company
- Over $100B in annual revenue
- Publicly traded
- Investment grade credit rating
- First tax credit transfer
The Seller’s Objectives
Maximize cash proceeds
Close with a single counterparty who could take $40M+ of tax credits
Minimize execution timeline and risk
Sourcing the Ideal Buyer from a Vetted Pool
How Reunion's market intelligence identified the right match at a premium price from a pool of 50+ vetted buyers.
Reunion Market Monitor revealed key insights about investment grade tax credits and pricing:
~20% of dollarized demand across Reunion's vetted buyer pool requires an IG counterparty
Nearly 60% of transaction-ready buyers are willing to pay $0.02+ premium for IG tax credits, regardless of credit type, technology, or volume
As such, Reunion ran a buyer discovery process based on:
Investment Grade Focus: Buyers who specifically required an investment grade seller
Fiscal-Year Filers: Buyers with a March fiscal-year close, often overlooked by other sellers because they were “out of market” relative to the calendar-year cycle
Price Premium For Investment-Grade Tax Credits
Data based on Reunion buyer survey conducted in January 2025
The Result:
A 130-year old American company ($2B+ annual revenue, fiscal-year filer) that met the seller's $0.95 ask.
Orchestrating a 45-Day Close
How Reunion aligned terms early and prepared the parties to move fast.
3 Days
To align on key commercial terms
7 Days
From term sheet to diligence memo
45 Days
From term sheet to close
Aligned early on critical terms
Pricing: Positioned $0.95 as a market-clearing price upfront to buyers to avoid a protracted bidding process
Tax Credit Insurance: Identified a buyer willing to forego insurance per the seller’s desire, accepting the IG parent company's indemnification instead
Volume Contingency: Agreed upfront on a deal structure that included pricing tiers outside the $40M–$50M target range, so the cost segregation report wouldn't trigger renegotiation
Ensured buyer transaction-readiness
Ran a tax credit workshop with internal stakeholders
Confirmed CFO had agreed to terms and delegated signing authority to VP of Tax
Confirmed Treasury had $60M cash on standby
Verified advisors were lined up: primary and backup law firms identified, two Big 4 firms engaged for diligence
