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- Transferable tax credits offer companies a new way to manage tax liabilities while advancing sustainability goals.
- The Inflation Reduction Act (IRA) expands capital access for clean energy developers through tax credit sales.
- Nasdaq ESG and Crux provide companies with the tools to leverage this fast-growing market and drive sustainability efforts.
Nasdaq ESG Solutions has partnered with Crux, a sustainable finance technology company, to help businesses navigate the emerging market of transferable tax credits. This collaboration allows companies to both manage their tax liabilities and boost their sustainability objectives by taking advantage of tax credits introduced by the Inflation Reduction Act (IRA).
The IRA allows clean energy developers and manufacturers to sell their tax credits to third parties, providing them with cash. This new market mechanism gives companies greater access to capital for clean energy infrastructure projects and offers a direct way to reduce federal tax bills.
Companies can use these transferable tax credits to not only lower their tax liabilities but also reinvest in their sustainability goals or other initiatives, creating a positive return on investment. By providing flexible financing options, this mechanism encourages broader market participation and faster deployment of clean technologies.
Through this partnership, Nasdaq ESG Solutions aims to help clients unlock savings and sustainability benefits. Crux’s platform, featuring the largest network of clean energy developers, enables access to the growing transferable tax credit market.
“Crux’s insights, combined with Nasdaq ESG Solutions’ strategic guidance, will help our clients navigate this evolving landscape and maximize the benefits of tax credit transactions,” Nasdaq ESG Solutions highlighted.
Crux’s 2024 Mid-Year Market Intelligence Report, based on $6.8 billion in tax credit transfers, reveals strong growth in the market. The report forecasts the market to reach $20-25 billion by the end of the year, driven by increasing transaction sizes and the use of insurance.
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With more than $12 billion of tax credits currently available, Nasdaq ESG Solutions and Crux are ready to assist companies in leveraging these opportunities to advance their sustainability strategies while reducing federal tax liabilities.
Nasdaq ESG Solutions and Crux are poised to make a significant impact in the transferable tax credit market. By providing access to critical market data and a vast network of developers, they offer clients a powerful platform to enhance sustainability efforts and realize financial benefits.