Introduction to the Emergent Transferable Tax Credit Market
Our Q3 2023 email update to corporate taxpayers.
Hello,
The market for transferable tax credits has gained momentum heading into Q4, as many buyers want to get their first deals done in the 2023 tax year. We expect the volume of deals to increase substantially as we reach the end of the year.
Exploring the latest market developments with EY and Troutman Pepper
In the latest edition of 10 Questions With Reunion, Brian Murphy of EY, Adam Kobos of Troutman Pepper, and our CEO, Andy Moon, discuss what they are seeing in transferable tax credit transactions.
The wide-ranging discussion covers topics of interest to tax credit buyers including pricing, using credits to offset estimated tax payments, timing of the IRS portal, and how to mitigate project risks.
Watch the full episode here.
See you at TEI on October 22-25 in NYC
Reunion is headed to New York on October 22-25 to attend the Tax Executives Institute (TEI) Annual Conference. Reunion CEO Andy Moon will be speaking on a panel about tax credit transfers. If you’d like to meet and discuss tax credit transfers while we are in New York, please schedule a meeting with us.
Best of luck to everyone closing out the quarter!
Team Reunion
Related Articles
.webp)
Reunion launches clean energy tax credit marketplace, which now has over $2 billion in tax credits available for sale
In July, we announced Reunion’s digital marketplace, with over $1 billion in near-term tax credits from clean energy projects such as wind, solar, battery storage, and biogas. Since then, the supply of tax credits on our platform has grown to over $2 billion!
Watch our marketplace announcement to learn more.
If you are a corporate buyer looking to purchase tax credits, please sign up to get access to the platform and take a look at our project portfolio. In addition to the largest inventory of marketable tax credits, we provide transactional support with deal structuring, insurance, and due diligence. Early tax credit transfer transactions are novel and complex, and we are here to answer your questions.
For project developers, please contact us to add your projects to our marketplace. All projects are listed in a way that protects the confidentiality of the sponsor, the project, and project counterparties. There is no obligation or exclusivity to listing a project. A seller portal will be released shortly that will allow you to easily add, edit, or remove projects from the marketplace.
Follow us on LinkedIn to stay up to date on our latest insights
Our founding team has a combined 40+ years of experience in clean energy finance, and we are sharing real-time market observations via our website and our LinkedIn page. Recent highlights:
- Billy Lee, Co-Founder and President, notes that tax equity is becoming relatively more scarce, and predicts transferability will become a component of most tax equity deals going forward (link)
- Kevin Haley, Head of Tax Credit Capital, wrote a popular article on how transferable tax credits help corporations navigate Corporate Alternative Minimum Tax (link)
- Our founding story: while Reunion launched in 2023, we have laid the groundwork for this company over many years (link)
Recent appearances at industry events
Billy Lee appeared on the Norton Rose podcast with Bank of America, JP Morgan, and others; it was covered in the June Project Finance newswire, and a transcript was published here.
Andy Moon, Co-Founder and CEO, appeared on a panel discussion with Perkins Coie and Novogradac to do a deep dive into Treasury's guidance on tax credit transfers.
Andy Moon appeared on a panel with JP Morgan, Marathon Capital, and others in June at the Norton Rose Energy Finance conference; please keep an eye out for the August Project Finance newswire for a transcript.
Looking forward to the rest of the year
The Treasury Department released Proposed Regulations for tax credit transfers on June 14, and the clean energy industry breathed a collective sigh of relief. Uncertainty around the timing and the contents of Treasury guidance has been a hindrance to moving tax credit deals forward. Treasury clearly laid out the mechanism for tax credit transfers, and confirmed several important economic points (e.g., tax credits purchased at a discount will not be subject to tax on the discounted amount; tax credits can be used to offset estimated quarterly tax payments).
Reunion has been pleased with the uptick in activity from both buyers and sellers since June 14. Please let us know if we can help your organization purchase or sell a tax credit, or if we can collaborate on furthering the market for clean energy tax credits.
Have a great rest of the summer!
.png)