Ongoing Surge in Clean Energy Tax Credits Through 2025
Overview
A recent report by Reunion, a leader in tax credit transfer, emphasizes that the demand for transferable clean energy tax credits shows no signs of waning, even amidst shifting policy environments. The findings underscore the pivotal role these credits are playing in corporate financial strategies as companies increasingly seek to maximize their tax benefits.
The report titled
"Transferable Tax Credits in 2025: The Buyer Perspective" utilized Reunion’s transaction data alongside insights from senior tax executives within major corporations. Remarkably, it indicates that
85% of corporate buyers intend to maintain or even increase their volume of clean energy tax credit purchases in 2025 compared to the previous year.
Insights from Corporate Buyers
According to Andy Moon, the CEO of Reunion, there has been a notable uptick in buyer activity at the beginning of 2025 versus the previous year. He stated, _“The strength of buyer demand underscores the growing role of clean energy tax credits in corporate tax strategy and financial planning.”_
Key Findings:
1.
Maximization of Tax Benefits: The majority of surveyed corporate buyers aimed to offset as much of their tax liabilities as legally permitted, with
over 80% targeting to cover at least half of their total tax liability with credits.
2.
Pricing Trends: The demand continues to elevate prices in the market, with high-quality tax credits nearing buyers' maximum willingness to pay by the end of 2024.
3.
Active Market Dynamics: The competition in the market for premium quality deals has intensified, resulting in many transactions concluding within just one to two weeks.
The clean energy sector is experiencing a transformative phase, now employing more than
3.5 million individuals and adding
400,000 jobs since 2020. This growth has heightened the necessity for financial mechanisms such as transferable tax credits established under the Inflation Reduction Act. As electricity demands surge due to expanding technology sectors, including AI and data centers, such financial tools become essential for scaling clean energy solutions to meet that demand.
Reunion's Role in the Market
Reunion is dedicated to expediting clean energy tax credit transactions, aiming to provide simpler and more reliable options for buyers and sellers alike. Moon further expressed his commitment: _“We look forward to continuing to help buyers and sellers navigate a competitive market and ensure that clean energy projects can access the financing they need.”_
Accessing the Report
Industry professionals interested in further insights from the report can access it at Reunion's website. Download
"Transferable Tax Credits in 2025: The Buyer Perspective" for a comprehensive view of the current landscape and strategies relevant to clean energy tax credits.
For those keen on buying or selling tax credits, additional information can be found at
Reunion's official website.
About Reunion
Reunion specializes in facilitating the transactions of clean energy tax credits and has successfully worked with large corporations, facilitating the purchase of more than
$3.5 billion in credits from various clean energy projects in 2024, including solar and wind. Their marketplace offers billions of dollars in verified tax credit opportunities, with a dedicated team focused on ensuring effective commercial negotiations, due diligence, and risk management throughout the transaction process.
For further details, prospective buyers and sellers can reach out directly through the contact section on the Reunion website.