Clean Energy Tax Credits

The Inflation Reduction Act (IRA) of 2022 has brought about a significant change in U.S. clean energy policy by introducing enhanced tax incentives that are reshaping renewable energy investments. One of the most impactful changes is the ability to transfer tax credits to third parties. This change marks a significant departure from the old model for tax equity markets where beneficiaries had to make an equity investment in the project to benefit from tax credits.

Now, tax credits can be sold to corporates against their current cash-out tax liabilities – who can thereby take advantage of the tax benefits without having to invest in the projects themselves. This makes the credits more accessible and flexible, broadening the pool of potential beneficiaries.

The role of STX in the Clean Energy Tax Credits Market

Developers

STX Group maximizes the value of your tax credits by connecting you with a broad network of corporates ready to buy. Our expertise in supporting you get ready to transact as well as in actual deal structuring ensures optimal timing, pricing, and liquidity, tailored to your project’s needs. With our deep market knowledge, we help you achieve the best returns.

Corporates

STX Group can help any company with a cash tax liability save money, boost profitability and lower working capital requirements by providing high-quality tax credits from thoroughly vetted projects. Our deal structuring aligns with your risk appetite and tax obligations, maximizing tax credit effectiveness through tailored timing and pricing. For more information on corporate offering, please visit STRIVE by STX.

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How STX can help maximize the value of your tax credits

Sell-Side Advisory Capabilities

We offers expert sell-side advisory services, helping you maximize the value of your clean energy tax credits. Our team’s deep understanding of market dynamics and pricing strategies ensures that developers can effectively monetize their credits, even in complex market conditions. We help you navigate the intricate process of finding the right buyers, and help structure deals that maximize returns, thus securing the necessary liquidity to keep your projects moving forward.

Strong and Growing US footprint with Access to International Markets

Through our dedicated climate action arm, STRIVE by STX we offer extensive access to local corporate buyers. Our international footprint, with a local presence in Europe, APAC, and LatAm, enables us to also connect developers to international buyers looking to offset the tax liabilities of their U.S. operations. This dual advantage enables better pricing and terms by tapping into both domestic and global demand for tax credits, maximizing project value.

One-Stop Shop for Environmental Commodities

STX Group’s ability to offer a one-stop shop for all environmental commodities is a major asset for developers. Beyond just selling their tax credits, we can also assist you in selling their Renewable Energy Certificates (RECs) and other environmental assets, ensuring that they can maximize all potential revenue streams. This holistic approach simplifies the process for developers, allowing them to focus on their core business while we handle the complexities of the market.

20+ Years of Trading Experience and Expertise in Deal Structuring

With 20+ years of experience as a trader and in deal structuring, STX Group has a proven track record of facilitating high-value transactions that meet the unique needs of developers. Our expertise allows us to craft deals that provide developers with the liquidity they need when they need it most, such as aligning sales with critical project milestones or securing upfront payments to fund ongoing operations.

Understanding IRA Bonus Incentives

The IRA introduced legislative enhancements that impact the volume of clean energy tax credits a project can generate, including the issuance of bonus credits or “adders.” These bonuses apply to projects that meet certain criteria, such as labor standards, being located in a designated energy community, or that use certain domestic raw materials. While the base value of each credit remains the same, the total number of credits a qualifying project can produce can be higher when these criteria are met.

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