Reunion Releases Q3 ’24 Market Intelligence Report on Transferable Tax Credits

Analysis of ~$10 billion in cumulative transaction volume shows increased buyer demand, driving pricing upwards and shortening transaction times

SAN FRANCISCO, Oct. 17, 2024 /PRNewswire/ — Reunion, a leading facilitator of clean energy tax credit transactions, today announced the release of its Q3 ’24 Market Intelligence Report, providing insights into the rapidly evolving market for tax credits transferable under the Inflation Reduction Act (IRA). The report highlights significant trends, such as the growing presence of large corporate buyers, surging demand for §45X credits, and shifts in pricing and transaction terms.

Key Market Trends

New corporate buyers have driven pricing up: An influx of corporations with $100M+ annual tax liabilities entered the market in mid-2024. Buyers stepped in as their current year tax liabilities became clearer, and they gained confidence from seeing peer transactions close.
Most significant price increase for large ITCs from creditworthy sellers: More buyers gained comfort with ITCs as the year progressed, and as the supply of large 2024 credits dwindled. In Q3, bids climbed as high as $0.95 on large ITCs with investment grade sellers, up from $0.92–$0.93 earlier this year.
§45X credits see explosive growth: As the fastest-growing credit in the market, §45X credits are particularly attractive to large buyers seeking transactions between $100M and $500M+.
Transaction speed has increased: Reunion-facilitated deals now close within 45 days from term sheet signing on average, although pre-term sheet preparation remains the most time-intensive step.
Early bids have started on 2025 credits: Forward-looking buyers have started transacting on 2025 credits to access a wider selection of credits, and avoid year-end bidding wars.

Download the full report here.

Reunion estimates that $21–24 billion of clean energy tax credits will be transferred in 2024, with the market expected to surpass $60 billion annually by 2030 as more companies enter the market for tax credit transfers. To further explore these insights and answer audience questions, Reunion will host a webinar on November 4th at 11:00 am PST. Register here.

Reunion has facilitated over $2 billion in tax credit transfer deals to date in 2024. Reunion’s experienced team is committed to helping buyers and sellers quickly identify counterparties, conduct due diligence and mitigate risks, and successfully close transactions through expert guidance and hands-on support.

“In the short time since the IRA provisions took effect, the market has matured rapidly,” said Andy Moon, CEO of Reunion. “We work with some of the largest and most experienced tax credit buyers and sellers to navigate the market with confidence, ensuring deals close efficiently and at fair pricing and terms.”

Companies interested in buying or selling credits can contact the Reunion team at [email protected].

About ReunionReunion facilitates the purchase and sale of clean energy tax credits and has worked with major corporations to purchase over $2 billion in tax credits from solar, wind, storage, advanced manufacturing, and other clean energy projects. Our curated marketplace features billions of dollars in high-quality tax credit opportunities, and our team of clean energy finance veterans supports buyers and sellers through each step of the transaction process, focusing on commercial negotiation, due diligence, and risk mitigation.

To learn more, visit www.reunioninfra.com.

SOURCE Reunion Infrastructure