Exploring Tax Credit Pricing Dynamics and Market Trends

This chapter delves into the pricing dynamics of tax credits in the market, discussing buyer diligence costs and risk factors leading to credits being sold at a discount. It also explores strategies like clustering small projects to secure higher rates and the historical practice of larger companies buying and financing projects collectively for tax equity. The discussion covers trends in 2024, market dynamics, growth projections, and factors influencing the monetization of tax credits.