Q3 2024 Market Intel: Transferable Tax Credit Pricing and Market Trends

The transferable tax credit market continues to grow at a pace that has surprised industry participants and observers alike. Reunion estimates that $21B to $24B of tax credits will be transferred this year, up from an estimated $5B to $7B in 2023.

Key Q3 takeaways:

• An influx of large corporate taxpayers ($100M+ in annual tax liability) entered into the market in mid-2024, driving up pricing across the board
• The most marked increase in tax credit pricing has been for large ITCs from creditworthy sellers
• Forward-thinking buyers have started transacting on 2025 credits to access a wider selection of credits and avoid late-year bidding wars
• §45X is the fastest growing credit in the market and is particularly attractive to large buyers
• Speed of transactions has increased, with the average Reunion-facilitated transaction closing within 45 days from term sheet signing
• Reunion estimates that $21B to $24B of clean energy tax credits will be transferred in 2024

Our market intel includes estimated pricing for Q4 2024, which is based on term sheets and tax credit transfer agreements that are scheduled to close in Q4.