US energy tax credit trading grows to as much as $9 bn, show study
Developers of renewable energy projects selling unused U.S. tax credits to other companies now account for a market worth between $7 billion and $9 billion, buoyed by legislation in 2022 that made these trades possible, a new study shows.
President Joe Biden’s climate law aimed to stoke trillions of dollars of investment to wean the economy off planet-warming fossil fuels, partly through tax breaks for builders of projects like wind farms and solar plants.
The government made some of these new credits tradable, in the hope of bringing fresh money to projects which have long relied on a group of banks that are big and expert enough to invest directly and take the associated tax breaks.
