Nasdaq ESG Solutions Collaborates With Crux To Help Companies Unlock Value With Clean Energy Tax Credit Transactions

October 02, 2024 11:35 PM AEST | By 3BL
 Nasdaq ESG Solutions Collaborates With Crux To Help Companies Unlock Value With Clean Energy Tax Credit Transactions
Image source: Kalkine Media

Nasdaq

The Nasdaq ESG Solutions and Crux collaboration spotlights the importance of transferable tax credits in enabling companies to manage their tax liabilities and the opportunity to supercharge sustainability goals.

At Nasdaq ESG Solutions, we are always looking for innovative ways to help our clients advance their sustainability goals while unlocking new sources of value. Our collaboration with Crux, a sustainable finance technology company, is intended to help clients take advantage of transferable tax credit transactions offered through the Inflation Reduction Act (IRA).

What is the Inflation Reduction Act of 2022 (IRA) and how does it benefit corporates?

The IRA offers funding, programs, and incentives to accelerate the deployment of clean energy projects (solar, geothermal, wind, energy storage, microgrids, etc.) and climate resilience to move towards a clean energy economy. The law’s transferability provision allows, for the first time, clean energy developers and manufacturers to sell their tax credits to third parties for cash.

By introducing this market mechanism, the IRA expands access to capital for corporates that develop qualifying clean energy infrastructure, innovative technologies, and advanced manufacturing and reduces federal tax bills for corporate buyers of these tax credits.

Why is this important?

Transferability presents an opportunity for companies across different industries and sizes to support the energy transition while generating a positive return on investment.

For example, companies with federal tax liability can use transferable tax credits to reduce their federal tax bill and unlock additional value, which they can choose to use to accelerate sustainability goals or invest in new initiatives. At the same time, companies that produce renewable energy or advanced manufacturing products eligible for transferable tax credits may be able to access more flexible forms of financing, driving greater market participation and accelerating deployment of clean technologies.

How can Nasdaq ESG Solutions and Crux help corporates navigate this new market?

The Nasdaq ESG Solutions business aims to deliver scaled positive impact across corporates, investors, and financial institutions and their employees, customers, and suppliers. Nasdaq ESG Solutions’ work across the corporate and investment communities uniquely positions us to support clients as they strive to achieve their sustainability objectives.

Launched in January 2023, Crux’s goal is to change the way clean energy and decarbonization projects are financed in the United States, starting with transactions for the transferable clean energy tax credits. Through our collaboration, Nasdaq ESG Solutions clients have the opportunity to realize cost savings and advance their sustainability objectives through access to Crux’s platform, which features the largest network of clean energy project developers and manufacturers. Our clients will also benefit from Crux’s insights on the dynamic, rapidly growing transferable tax credit market.

In July, Crux released its 2024 Mid-Year Market Intelligence Report based on data from $6.8 billion in tax credit transfers. The report highlights several trends:

  • Strong market growth: The transferable tax credit market continues to grow rapidly and is forecasted to reach $20-25B by year end, which is more than double the size of 2023.
  • Clear pricing drivers: Average 2024 pricing is trending higher than 2023, with transaction size and use of insurance as key drivers.
  • Buyer interest in forward-commitments: Transferable tax credit buyers are beginning to look at 2025 opportunities. 25% of 2024 reported deals included a forward component with future year tax credits.

Crux’s report also underscores the breadth of the market that is now accessible to companies with varying federal tax profiles and different stages of tax credit purchase maturities. With more than $12 billion of credits available today, Crux and Nasdaq ESG Solutions are well-positioned to help clients and their legal and tax advisors new to the market explore how transferable tax credits may be available to enhance clients’ sustainability strategies and reduce federal tax liability.

We’re working together with Crux because they operate the industry’s central platform, which means we think that they are poised to play an outsized role in making the market for transferable tax credits more liquid, transparent, and efficient. Their combination of market data, platform power, the extensiveness of their network, and their experienced team—together with the strategic insights of Nasdaq ESG Advisory—can help clients interested in accelerating their sustainability goals and making a positive impact on the environment.

Companies seeking further information on leveraging transferable tax credits to support their sustainability goals can get in touch with Nasdaq ESG Solutions here.

© 2024 Nasdaq, Inc. The Nasdaq logo and the Nasdaq ‘ribbon’ logo are the registered and unregistered trademarks, or service marks, of Nasdaq, Inc. in the U.S. and other countries. All rights reserved. This communication and the content found by following any link herein are being provided to you by Nasdaq ESG Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nothing herein shall constitute a recommendation, solicitation, invitation, inducement, promotion, or offer for the purchase or sale of any investment product, nor shall this material be construed in any way as investment, legal, or tax advice, or as a recommendation, reference, or endorsement by Nasdaq. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. At the time of publication, the information herein was believed to be accurate, however, such information is subject to change without notice. This information is not directed or intended for distribution to, or use by, any citizen or resident of, or otherwise located in, any jurisdiction where such distribution or use would be contrary to any law or regulation or which would subject Nasdaq to any registration or licensing requirements or any other liability within such jurisdiction. By reviewing this material, you acknowledge that neither Nasdaq nor any of its third-party providers shall under any circumstance be liable for any lost profits or lost opportunity, direct, indirect, special, consequential, incidental, or punitive damages whatsoever, even if Nasdaq or its third-party providers have been advised of the possibility of such damages.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.