Renewable Energy Credits & Incentives
Federal, state and local tax incentives exist to encourage investments in energy-efficient and sustainable technologies.
We help businesses buy and sell tax credits that align with their business goals.
Businesses have been afforded new and expanded opportunities to monetize tax credits and advance renewable energy commitments, but the process is far from simple.
One of the most significant changes from the Inflation Reduction Act (IRA) was the creation of credit monetization through transferability, meaning that taxpayers can now buy and sell certain federal tax credits. In conjunction with state programs permitting transferable credits, the expanded incentive credit market creates opportunities for both credit sellers and buyers to increase project economics and implement tax planning strategies while supporting sustainability-related initiatives.
BDO’s Tax Credit Monetization team works with credit sellers and buyers to navigate the complex credit transfer market and execute a credit strategy that best aligns with their goals. We offer a full-service approach to identify, generate, and monetize tax credits.
Whether you’re a credit generator or purchaser, unlock access to BDO’s network of credit buyers and sellers.
Identify the tax credits that will best align with your business goals and model the impact on your project’s return on investment.
Whether you want to sell credits to increase cash flow on your project or purchase credits to lower your tax liability, we can help develop a roadmap to achieve your goals.
Advise on the credit transfer process, including determining the appropriate amount of credits to sell or purchase.
Review information to confirm the validity of credit eligibility, assess bonus credit requirements and expense qualification, and assist with tax credit insurance.
Seamlessly close the transaction while complying with reporting requirements for buyers and sellers, including registration with the IRS and certain states.
The IRA created the ability to transfer certain federal renewable energy credits, introducing a simpler method to monetize credits than traditional tax equity partnerships. If your business qualifies for renewable energy credits but doesn’t have a significant tax liability, you may choose to sell those credits in exchange for cash. Businesses with tax liabilities may be able to offset their taxable income by buying such federal tax credits at a discount.
Whether you are looking to generate credits, sell credits in exchange for cash, or purchase transferable credits to lower your total tax liability and contribute to sustainability initiatives, BDO can help.
Many state programs exist that allow for the transfer of tax credits, including film credits, historic property rehabilitation credits, low-income housing credits, R&D credits, and more.
From tax contributions that fund key social benefits to environmental taxes and green subsidies, tax plays a critical role in the sustainability conversation. Bring a total tax mindset to your strategy.
Explore our most recent resources and thought leadership.
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Federal, state and local tax incentives exist to encourage investments in energy-efficient and sustainable technologies.
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