A NEW WAY.
Buying clean energy tax credits can boost your earnings with Low-risk investments that support clean energy development.
Smith Dierking Empowers You to confidently engage in the purchase of clean energy tax credits.
With over 15 years of experience in the energy industry, we work with forward thinking executives and leaders who are focused on innovative and impactful ways to advance their businesses.
The Time is Now.
The Inflation Reduction Act (IRA) has ushered in a new era in clean energy project financing. The past was characterized by complex and expensive tax equity structuring and relatively few, larger players. With new transferability rules, the IRA has opened the door to much simpler transactions that are accessible and practical to a wider base of companies.
You can lead your company to this opportunity.
Smith Dierking will guide you through.
Clean energy and manufacturing project investment in first two years of IRA
Total Volume of tax credit transfer transactions in 2024
Is it possible to generate returns and bring about positive impact, locally and globally, by buying clean energy tax credits?
Discover The Economic Effect.
Developers and manufacturers of clean energy projects sometimes generate more tax credits than they can use and may choose to sell those credits at a discount. The IRA enables eligible companies to recognize financial gains by purchasing these discounted credits.
For example, a developer could negotiate to sell $50 million of tax credits for $46 million. The developer benefits by monetizing their unused credits. The buyer realizes benefits from both a cash and a financial statement perspective. The buyer yields a return on cash as they reduce their income tax liability by the face value of the credits they purchased at a discount. Additionally, the buyer boosts their financial statement earnings as they recognize an income tax benefit and a reduction to their effective tax rate when they utilize the credits.
While the price for credits can vary significantly based on a number of factors, as a general range most credits currently on the market will sell for a price between 90 and 96 cents per dollar of tax credit.
Projected transfer eligible tax credits to be produced through 2032
Projected additions to U.S. renewable energy capacity in 2025
Additions to U.S. renewable energy capacity projected through 2030
Discover The
Ripple Effect.
Corporate Buyers
Companies like yours purchase transferable tax credits from solar, wind, battery storage, and other clean energy projects and generate attractive risk-adjusted returns on capital.
Clean Energy Projects
Tax credit purchases help drive greater investments in clean energy by increasing sources of financing to existing green energy companies, new start-ups, and innovative technologies.
The Planet
Increasing deployment of renewable energy decreases carbon emissions, pollution, and waste and helps meet the growing global demand for electricity sustainably.
People Everywhere
Positive environmental impacts improve the health and well-being of individuals, families, and communities around the globe.
Let’s Work Together
When you partner with Smith Dierking, we place your success at the center of everything we do.
Confidently Engage
We will attentively guide you through each step of the transaction process to simplify and streamline your experience.
Minimize Risk
From project selection, through diligence, to indemnities, guarantees, and insurance, we help you reduce your risk every step of the way.
Identify
Evaluate available opportunities
Bid
Express interest and negotiate terms
Confirm
Perform due diligence and agree definitive documents
Mitigate
Minimize risk exposures
Close
Execute final transfer agreement