Giving clean energy projects 12 months to start building and keep tax credits averted ​“catastrophe,” but won’t solve the energy crisis looming by decade’s end.

Tax credits for battery, geothermal, nuclear, and manufacturing projects survived — but restrictions on Chinese materials could make them near-impossible to use.

S&P Global reports that the budget bill's proposal to phase out clean energy incentives by eliminating tax credit transfers is expected to significantly shrink the renewables project finance market, which facilitated $40 billion in such transfers in 2024.

This article outlines significant changes to clean energy tax credits proposed in a House budget bill, largely overhauling expansions of the Inflation Reduction Act.

While plenty of uncertainty for the future remains, it’s clear that credit transfers authorized under the IRA have solidly taken off. That may make them more difficult to end or revise, as illustrated by a March 9 letter from 21 House Republicans to their colleagues arguing against repeal.

Dimension Energy, a leader in community solar projects, secured a $128 million tax credit transfer with a Fortune 500 company to advance 30 solar projects totaling 122 MWdc across seven states.

Reunion Survey Shows 85% of Corporate Tax Credit Buyers Plan to Maintain or Increase Purchases

These transactions are one of the largest advanced manufacturing tax credit transfers to date, reflecting the growing scale of the domestic power generation technology manufacturing base.

Transfer of federal renewable energy credits (RETCs) exploded in 2024, according to professionals in the field, including a team that completed a transaction in August on a portfolio of community solar systems in Virginia.

Drawing on decades of clean energy financing experience, Reunion has transacted across a range of transferable tax credits – §48 ITCs, §45 PTCs, §45X AMPCs, and §30C alternative fuel infrastructure credits – and technologies.

A multibillion-dollar market for clean energy tax credits has materialized in a matter of months, sparked by a provision of President Joe Biden's marquee climate law that allows project developers and manufacturers to directly sell their credits for cash.

Buyers and sellers of clean energy tax credits typically use a tax credit transfer agreement (TCTA) to memorialize the terms and conditions of these transactions.

Examining key issues and risk mitigation strategies for buyers in the market for clean energy tax credits.

This innovation, known as transferability, marks an important departure from the tax equity partnership, which is the predominant way to finance renewables. Under transferability, developers can sell tax credits to any corporation and use the cash to offset the high upfront costs for building projects. Corporations, meanwhile, get a chunk off their tax bill.

Credit buyers seeking a high degree of reassurance, particularly on recapture risk, are flocking to tax credit insurance.

Reunion, a technology-enabled finance company, originates and facilitates tax credit transfer for Advanced Power

In episode 5 of 10 Questions with Reunion, our president, Billy Lee, sits down with David Kinzel of Marsh to discuss tax credit investor insurance. As David notes, credit insurance has the potential to meaningfully "expand the universe of buyers well beyond what it is today and add more liquidity into the transferability market."

The Inflation Reduction Act opened the market for buying and selling energy tax credits by creating a new asset class. One result of that innovation was the launch of new marketplaces in which buyers and sellers can transact.

Billy Lee, Co-founder & President of Reunion Infrastructure, discusses the complexities in monetizing tax credits from renewable energy projects. Learn how Reunion is navigating through tax equity barriers that have historically disadvantaged smaller distributed solar projects. The discussion delves into the transformative impact of the Inflation Reduction Act (IRA), unraveling how Reunion connects developers and corporate buyers in the purchase of clean energy tax credits. Also, learn about Billy's journey from working in oil and gas investment banking to becoming a renewable energy entrepreneur.

New IRA tax credit provisions could more than triple the $20 billion annual tax equity market that today finances clean energy in the U.S., if various challenges can be overcome.

Our CEO, Andy Moon, talked with Chris Wedding in episode 152 of the Entrepreneurs for Impact podcast.

In a special, 60-minute edition of 10 Questions with Reunion, Brian Murphy of EY, Adam Kobos of Troutman Pepper, and Andy Moon of Reunion discuss the latest developments in the transferable tax credit marketplace.

Our CEO, Andy Moon, chatted with Cody Simms on the My Climate Journey podcast.

Today’s tax equity markets can’t handle the IRA’s flood of clean energy tax credits. A provision in the law could fix that, but only if corporate buyers step up.

Announcing the launch of Reunion's clean energy tax credit marketplace

In this episode of Pivotal180 in Conversation, we interview Andy Moon, CEO and Co-Founder of Reunion Infrastructure. We discuss recent changes in the United States’ tax equity market, most notably the transferability of tax credits, and how Reunion has seized on the opportunity presented by transferability and created a marketplace to connect sellers and buyers of tax credits.

Industry experts, including Ted Brandt of Marathon Capital and Jack Cargas of Bank of America, discuss new federal tax credit trading enabled by the Inflation Reduction Act. Starting January 1, companies can trade nine types of tax credits for cash. Moderated by Keith Martin, the panel offers insights into this evolving market landscape.

Tradable tax credits in renewable energy are rising, spurred by the U.S. Inflation Reduction Act. They enable clean-energy projects to gain financing, unlocking billions for solar, wind, and battery farms. This supports the Biden administration's goal of a decarbonized electricity grid by 2035.