Press Release
Baker Tilly Launches Fund Connecting Renewable Energy Tax Credit Buyers and Sellers
Jan. 28, 2025
New investment vehicle streamlines access to transferable energy tax credit marketplace
CHICAGO (Jan. 28, 2025) – Leading advisory, tax and assurance firm Baker Tilly has launched BT Renewable Energy Tax Credit Fund I, LLC, designed to facilitate the transfer of renewable energy tax credits between buyers and sellers. This fund provides businesses and high-net-worth individuals with efficient options to offset tax liabilities while helping renewable energy developers monetize tax credits to fund future projects.
The fund leverages expanded clean energy tax incentives under the Inflation Reduction Act (IRA), including a "transferability" provision. This feature allows tax credits to be transferred in a one-time transaction, offering buyers a tax-efficient solution without requiring direct participation in energy projects and giving sellers immediate access to capital.
“This fund bridges the gap between renewable energy developers and tax credit buyers, unlocking financial opportunities for both,” said Todd Carpenter, managing principal of Baker Tilly’s development and community advisory practice. “It’s a win-win solution that advances clean energy while delivering meaningful tax and economic benefits.”
Key Benefits
For Buyers:
- No project involvement: Acquire credits without being an owner in a clean energy development project.
- Same-year usage: Apply credits immediately to offset current-year tax liabilities.
- Tax-exempt transactions: The discount between credit value and purchase price is not subject to tax.
- Income tax offset: Use credits to reduce estimated quarterly income tax payments.
- Flexibility: Credits can be carried back three years or forward up to 22 years.
- Environmental impact: Support renewable energy initiatives.