The American Clean Power Association (ACP) has teamed up with sustainable finance technology company Crux to make clean energy tax credit transfers more accessible to the clean energy industry. Starting May 2, ACP’s more than 800 member companies will be able to access discounted transaction fees on Crux’s platform.
Crux is changing the way clean energy projects are financed in the United States, starting with transactions for the new transferable clean energy tax credits created by the Inflation Reduction Act (IRA). The new transferable tax equity market allows, for the first time, clean energy developers and manufacturers to sell their tax credits to third parties for cash — creating a powerful market mechanism to expand access to capital for clean energy infrastructure, innovative technologies and advanced manufacturing.
“Our partnership with Crux will help catalyze accessible funding alternatives for clean energy,” said Jason Grumet, ACP’s CEO. “By simplifying the ability to monetize tax credits, the industry can invest more effectively and flexibly, bringing more projects, jobs, and investment to communities across the U.S.”
This partnership provides ACP members with discounts on transferable tax credits transaction fees as well as access to programming and insights developed by Crux — such as PowerCasts, white papers, reports and more — throughout the year.
“Capitalizing on the tremendous growth opportunity for our clean energy sector and maximizing the tax incentives provided by the IRA requires expanding the tax equity investor base,” said Susan Nickey, ACP board chair and chief client officer at HASI. “Partnering with Crux provides the industry with critical tools, data, and pricing transparency to build a robust and efficient market for tax credit transfer transactions.”
The partnership will launch officially at CLEANPOWER 2024, ACP’s premier conference that brings policy leaders, industry experts, and major players together for a week of learning, networking and innovation. At the event, which kicks off May 6 in Minneapolis, Crux CEO and cofounder Alfred Johnson will be participating in daily fireside chats on the PowerCasts stage designed to educate members and attendees on clean energy tax credits.
“Crux is thrilled to partner with the American Clean Power Association to offer its organization of the most prominent clean energy policy leaders, industry experts, and companies access to our powerful technology and large network of tax credit buyers,” said Johnson. “We’re looking forward to helping ACP members efficiently finance their clean energy projects in the future.”
Crux’s partnership with ACP aims to boost the emerging transferable tax equity market, estimated to have attracted $7-9 billion in its first year (according to a Crux report published in January). To date, Crux has facilitated diverse technology transactions across solar, standalone storage, microgrids, bioenergy and renewable natural gas, and advanced manufacturing, and currently has more than $8 billion in credits available on its platform.
Tags: tax credit
