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Volts

Why "transferable" tax credits are such a big deal

Apr 19, 2024
CEO Alfred Johnson of Crux Climate discusses how the Inflation Reduction Act has created a market for selling clean energy tax credits, driving billions in new investments. Topics include challenges faced by businesses, the evolution of tax credit pricing, IRS guidance, and the impact on renewable energy projects and corporate tax burdens.
01:14:46

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Quick takeaways

  • Small firms can now sell clean energy tax credits under new system, boosting investments.
  • Tax credit system changes aim to create a robust market for tax equity investment.

Deep dives

Impact of Transferable Tax Credits on Clean Energy Financing

Transferable tax credits under the Inflation Reduction Act have revolutionized clean energy financing. The act extended existing credits for wind and solar and introduced new credits for various clean energy technologies. Small and medium-sized firms, especially startups, who couldn't benefit from these tax credits due to low tax burden can now sell them under the new system, resulting in the full value of credits being utilized.

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