Basic climate announced the completion of a $600,000 transfer of investment tax credits from WeWould Solar, a subsidiary of Stadlen Family Holdings sold to Creditable Capital, a private market investment group focused on acquiring clean energy tax credits from commercial projects in the lower to mid-market. The transferred credits are from WeWould Solar’s 1.2 MW behind-the-meter solar project outside Gainesville, Florida.
The transaction represents a milestone in Basis Climate’s ability to efficiently transfer tax credits at increasingly smaller deal sizes. Historically, tax credit generation has occurred through tax equity investments, many of which have required deal sizes in excess of $10 million.
“We are excited about delivering clean energy solutions to our real estate portfolio. We were supported by the Basis Climate team in navigating the transaction process, as well as the IRS pre-filing registration portal. Simplified due diligence, standardized documentation, and a transparent and customer-centric approach brought this deal to a successful conclusion,” said Joseph Stadlen, Legacy Steward of Stadlen Family Holdings.
A new provision of the Inflation Reduction Act (IRA) of 2022 created a market for clean energy tax credits by allowing their one-time transfer to other federal taxpaying entities – making it easier for developers to raise the capital they need have to finance their projects.
“We started our company because we firmly believe that clean energy tax credits of any size must find ways to do business efficiently in the transfer market. The Inflation Reduction Act will only have its true impact when the entire market has access to the universe of project financing solutions,” said Erik Underwood, CEO of Basis Climate.
News item from Basic Climate
