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.

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Additional Resources

Guides and handbooks from Reunion.

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November 4, 2024

Section 45 PTC Due Diligence Guide

A roadmap for assembling a due diligence package that satisfies the documentation needs of enterprise tax credit buyers, and provides tax credits sellers with insights on the type of documentation they will need to prepare.

Guide

August 22, 2024

Section 48 ITC Due Diligence Guide

Guide

August 1, 2024

Transferable Tax Credit Handbook Version 3.0

A comprehensive guide to buying and selling tax credits. Navigate the transferability process from start to finish, from identifying appropriate credits to due diligence and legal documentation

Guide

April 8, 2024

Transferable Tax Credit Payment Structures

Examine four payment structures under which corporate taxpayers can realize most or all of the benefit of a tax credit before paying the seller.

Guide

February 5, 2024

Timing of Transferable Tax Credit Purchases

Transferable tax credits are a useful tool for profitable companies looking to manage their tax position. When buying transferable tax credits, however, companies must consider their tax year-end in conjunction with that of the seller in order to claim the credits correctly and to the greatest extent possible.

Guide

September 27, 2023

Economic Model for Tax Credit Buyers

Download our transferability economic model for corporate taxpayers and align it with your company's fact pattern to ensure that you are aware of the post-tax nature of tax credit return metrics.

Guide

Reunion Accelerates Investment Into Clean Energy

Reunion’s team has been at the forefront of clean energy financing for the last twenty years. We help CFOs and corporate tax teams purchase clean energy tax credits through a detailed and comprehensive transaction process.

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