WASHINGTON, D.C. – A brand new report from ACORE presents survey knowledge from main traders about the efficiency of tax fairness constructions and the way they proceed to play a major function in financing clear power initiatives.
For greater than twenty years, tax fairness has offered a secure non-public financing mechanism and an vital supply of capital for new clear power initiatives within the United States. The U.S. clear power business now attracts over $45 billion in tax credit score investments yearly, of which greater than $20 billion is offered by banks by tax fairness preparations. The report gives an professional look into how tax fairness financing transactions are structured and the dangers and returns related to these offers.
Key takeaways from the report embrace:
- Overwhelmingly Optimistic Returns: An ACORE survey representing over 75% of the tax fairness market confirmed that these traders sometimes obtain a median 8.4% return on present investments.
- Minimal Draw back Danger: Dangers related to recapture, foreclosures, and chapter have been exceptionally low for tax fairness traders.
- Demand for Tax Fairness Exceeds Provide: Tax fairness is liable for between one third and two thirds of a clear power challenge’s general financing, and about 45% of tax fairness is offered by banks by tax fairness preparations. Demand for tax fairness will speed up as traders look to finance power storage and different eligible applied sciences that proceed to qualify for tax credit.
“This report displays ACORE’s dedication to delivering strong, neutral insights from the whole span of the clear power business,” mentioned Ray Lengthy, President and CEO of ACORE. “Getting clear power tax coverage proper is the important thing to making sure the US is able to ship the facility wanted for tomorrow’s economic system.”
The Danger Profile of Tax Fairness Investments: 2026 Version, is accessible in full on the ACORE web site.
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About ACORE
ACORE is a nonpartisan nonprofit group that operates on the intersection of affordability, reliability, and clear power deployment. Our work is targeted on stabilizing power costs, strengthening the electrical grid, and driving funding in cost-effective applied sciences to make sure that clear power delivers for individuals, companies, and the U.S. economic system.
ACORE’s membership contains clear power traders, builders, power patrons, energy turbines, producers, and power suppliers. In 2024, almost 80% of the booming utility-scale home clear power development was financed, developed, owned, outfitted, or contracted by ACORE members. For extra data, go to www.acore.org.
Media Contacts:
Chris Higginbotham
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