Basis Climate completes smallest solar tax credit transfer yet

Basis Climate announced the closing 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 lower to middle market commercial projects. 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 smaller and smaller deal sizes. Historically, tax credit monetization took place through tax equity investments, many of which required deal sizes above $10 million.

“We are excited about providing 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 diligence, standardized documentation, and a transparent and customer-oriented approach made this deal get to the finish line,” said Joseph Stadlen, Legacy Steward of Stadlen Family Holdings.

A novel provision of the 2022 Inflation Reduction Act (IRA) created a market for clean energy tax credits by allowing for their one-time transfer to other federal tax-paying entities – thereby making it easier for developers to raise the capital they need to finance their projects.

“We started our business because we firmly believe that clean energy tax credits of all sizes need to find ways to transact efficiently in the transfer market. The Inflation Reduction Act will not provide its true impact unless the entire market has access to the universe of project finance solutions,” said Erik Underwood, CEO of Basis Climate.

News item from Basis Climate