Tax Equity Basics
While the One Big Beautiful Bill Act (OBBBA) introduces changes that narrow transferability for some tax credits and set tighter timelines, the clean energy tax credit market remains strong and active. Many foundational credits retain their transferability provisions, ensuring developers and investors can still benefit from monetizing these incentives. The following credits are still transferable under current law for projects that meet eligibility and begin construction before key deadlines:
Investment Tax Credit (ITC) – Section 48 and 48E
Production Tax Credit (PTC) – Section 45 and 45Y
Carbon Sequestration Credit – Section 45Q
Clean Hydrogen Production Credit – Section 45V
Advanced Manufacturing Production Credit – Section 45X
These credits continue to provide developers with flexible financing options and enable investors to offset tax liabilities, keeping the tax equity market resilient even amid evolving legislative dynamics.