August 2024 marked the two year anniversary of the Inflation Reduction Act (IRA), which catalyzed  a substantial influx of private capital into U.S. clean energy infrastructure and manufacturing. Nearly $500 billion has been invested in these sectors in the past two years, driven by expanded tax credits that incentivize clean energy and advanced manufacturing projects.

Crux is publishing our third quarter installment of our industry-leading transferable tax credit market reports. The Third Quarter 2024 Market Update highlights market trends and data from the third quarter, including the market’s rapid growth and increased diversity. Crux estimates that $7-7.5 billion worth of tax credit deals closed in the third quarter alone, bringing 2024 year-to-date deal volume to $16-$18.5 billion. Key themes from the third quarter include an uptick in market liquidity, competitive bidding leading to increasing prices for 2024 credits, and compressed transaction timelines. As supply tightens, buyers are looking to forward commitments for 2025 tax credits, offering capital flexibility to energy developers.

The third quarter market update is based upon commercial activity on the Crux platform and any publicly available information regarding tax credit transactions. Download the report to gain insight from:

• The largest database of deal volume and commercial activity in the tax credit market. As of the third quarter report, Crux’s transaction database includes over $10 billion in completed transactions, plus another $17 billion in market activity on Crux, totaling nearly $30 billion in aggregate commercial data.
• A robust and diverse data set covering more than a dozen clean energy technologies, including wind, solar, storage, advanced manufacturing, bioenergy, carbon capture, hydrogen fuel cells, EV charging infrastructure, biomass facilities, combined heat and power plants, hydroelectric facilities, and more.
• Market pricing for the five most common clean energy projects, across a wide range of deal sizes, from under $25 million to over $150 million. This granular and precise information allows project developers, tax credit buyers, clean energy manufacturers, investors, and lenders to make the most informed decisions about a deal or project.
• Unmatched visibility into market supply and demand. Crux’s proprietary deal database is estimated to represent between 60-70% of all transactions in the market, regardless of where they occurred or whether they were announced publicly.
• The factors driving the fastest bid-to-close timeline on Crux. 66% of all PTC deals on Crux go from first accepted bid to close within 42 days, and about 1/3rd of ITC deals go from accepted bid to closed within the same period. Crux has the industry’s most comprehensive standardized documents, including term sheets, due diligence checklists by tech type, and closing documents. Customers using Crux docs achieved significant benefits in transaction timing and lower legal costs.

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Download the Third Quarter Market Update

In addition to our regular cadence of market reports, Crux is continuing to expand applications of our database to drive transparency, standardization, and efficiency in transferable tax credit transactions. For example, our market database also powers the Cruxtimate, the most accurate and intelligent price forecasting tool available in the tax credit market. Each credit listed on Crux receives a bespoke price estimate based upon a variety of factors, such as  technology type, tax credit type, deal size, and credit rating. Historically, Crux has found that 85% of all bids received by a listed project fall within the Cruxtimate range. Get in touch with us today to learn more about how Crux’s market data can inform your activity in the tax credit market.