Basis Climate Achieves Record with Smallest Solar Tax Credit Transfer
In a groundbreaking move, Basis Climate has completed a $600,000 transfer of investment tax credits, marking the company’s smallest deal size in tax credit transfers.
The transaction involved WeWould Solar, a subsidiary of Stadlen Family Holdings, as the seller and Creditable Capital, an investment group focused on clean energy tax credits, as the buyer.
The tax credits originated from WeWould Solar’s 1.2-MW behind-the-meter solar project near Gainesville, Florida. This achievement is significant as it demonstrates an efficient transfer process for smaller deal sizes, which historically required over $10 million.
Joseph Stadlen, representing Stadlen Family Holdings, praised Basis Climate’s support throughout the transaction. He highlighted the company’s simplified diligence, standardized documentation, and transparent, customer-oriented approach as crucial factors in the successful transfer.
Erik Underwood, CEO of Basis Climate, emphasized the importance of efficient transactions for clean energy tax credits of all sizes and the need for comprehensive project finance solutions to fully realize the impact of the Inflation Reduction Act (IRA).
The IRA has facilitated these transactions by allowing a one-time transfer of clean energy tax credits to other federal tax-paying entities. This provision has made it easier for developers to raise capital and finance their projects.
Basis Climate’s record-breaking transfer is expected to pave the way for more efficient and accessible financing options for smaller-scale clean energy projects.
As the demand for renewable energy continues to grow, the ability to transfer tax credits seamlessly will play a crucial role in accelerating the transition to a more sustainable future.
Industry experts expect this milestone will encourage more developers and investors to explore opportunities in the clean energy sector, ultimately contributing to the fight against climate change and reducing carbon emissions.