How Reunion Helps Corporations Purchase Transferable Tax Credits
Tax and treasury teams can purchase clean energy tax credits with confidence by working with Reunion on project selection, due diligence, and risk mitigation.
The market for clean energy tax credit transfers has accelerated rapidly in 2024, as corporate tax and treasury leaders see a significant new opportunity to reduce tax liabilities and increase corporate cash availability.
A complete transferable clean energy tax credit transaction, from identifying the opportunity to closing the deal, can be summarized in seven key steps.
Duration
Varies by company.
Goals and activities
How Reunion helps
Through an introductory call, Reunion's transactions team can equip your company with insights on eligibility, appropriateness, market dynamics, and risk. We can also help your team prepare a business case/investment committee memo and provide supporting materials. For larger organizations, Reunion has organized tax credit "workshops," which we have found are particularly effective for aligning multiple functional teams.
Key resources
- Transferable tax credit handbook
- How early investors are approaching clean energy tax credits
- Sample business case or investment committee memo (by request)
Duration
One to three weeks.
Goals and activities
How Reunion helps
Reunion takes a "push" and "pull" approach when helping companies find projects that most align with their needs. On the "push" front, we curate a list of tax credit opportunities based on the criteria we identified in step one and share it with your team. For many companies, we do this on a rolling basis as new projects join our platform. On the "pull" front, we provide your team with access to our managed tax credit marketplace, where we have over $7B (and growing) in near-term tax credits available.
Once your team has the right project(s) in mind, Reunion will populate our form term sheet on your company's behalf. We'll levarage our market intelligence to ensure your proposal is competitive and assist you in negotiating key terms, like timing of payment, indemnification, and tax credit insurance.
Key resources
- Tax credit marketplace
- Transferable tax credit transactions tracker
- Unlocking the economic benefits of tax credits before payment
- Sample term sheet (by request)
Duration
One to two weeks.
Goals and activities
How Reunion helps
Reunion conducts a preliminary screen to identify any major issues up front ("fatal flaw" due diligence analysis). From that point, we consult with your team to assess risks and recommend appropriate mitigation strategies. Importantly, this step ensures alignment of incentives: we do not want to move a transaction forward unless there is a high probability of success.
We also provide validated market intelligence to compare your proposed transaction to the risk/reward profile of similar tax credit opportunities in the market.
Key resources
- Buying and selling clean energy tax credits
- What should corporations expect to pay for clean energy tax credits?
- Due diligence checklist (by request)
Duration
Two to six weeks. The precise duration depends largely on the number and relatively complexity of projects in the transaction.
Goals and activities
How Reunion helps
Reunion spearheads the due diligence process by:
- Reviewing documents provided by the Seller, and requesting any missing or incomplete information
- Creating and organizing a data room, ensuring that due diligence documentation meets Reunion's checklist of required documentation
- Reunion will produce a summary due diligence memorandum summarizing our findings and highlighting any areas of concern
- If you are working with additional diligence advisors, Reunion will work closely with advisors to organize and accelerate their review process, reducing costs
Key resources
- Due diligence checklist (by request)
Duration
This step is optional and runs in parallel to step 4.
Goals and activities
How Reunion helps
Reunion can help companies decide if insurance is an appropriate risk mitigation tool for their transaction. If we collectively determine that tax credit insurance makes sense, we can advise on insurance offerings, including the scope of coverage – e.g., structure, qualification, recapture, PWA, bonus credit adders – and where gaps might exist.
We can also help you validate that the insurance policy is appropriately sized and includes penalties and tax gross-up and contest costs.
Key resources
Duration
This step runs in parallel to step 4.
Goals and activities
How Reunion helps
Reunion streamlines the negotiation process for buyers and sellers by providing a template legal document and helping parties focus on the most pertinent deal topics.
Key resources
Duration
Ongoing duration depending on credit type.
Goals and activities
How Reunion helps
Our transactions team will issue both parties reminders about filing requirements and deadlines, including tax forms and compliance. In subsequent tax years/quarters, Reunion will provide early acccess to new deals.
Key resources
Reunion’s team of clean energy and tax credit experts are here to support you through the entire process of buying and conducting due diligence on IRA tax credits. We draw on our deep expertise to help you navigate tax credit transactions, and our marketplace features the widest pool of tax credit opportunities available in the industry.
Our key differentiators include:
- Widest pool of high quality tax credits: We curate opportunities from our $10B+ marketplace, featuring technologies and projects ranging from under $3M to $300m+
- Extensive educational materials: We offer an extensive resource library featuring content on financial, legal, and market-related topics pertaining to IRA tax credits
- Hands-on due diligence: We support buyers throughout the transaction process, ensuring that the due diligence is performed at high quality and that risks are minimized upfront, saving you time and expense
- Industry-leading transaction team: Reunion has facilitated more than $2 billion in tax credit transfers in 2024. Our transaction team consists of industry veterans, with experience raising $5+ billion in clean energy project financing `with partners such as US Bank, JP Morgan, Wells Fargo, Bank of America, Key Bank, PNC, Nord/LB, D.E. Shaw, First Reserve, and over a dozen Fortune 500 companies
- Market intelligence tools: Available upon request, we offer proprietary insights on tax credit pricing and data on key trends
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