Nasdaq has announced a new collaboration between its ESG Solutions division and sustainable fintech company Crux to help clients leverage the Inflation Reduction Act’s (IRA) transferable clean energy tax credits.
These tax credits, introduced by the IRA in 2022, enable clean energy developers and manufacturers to sell credits to third parties, allowing companies to fund sustainability initiatives while lowering federal tax liabilities.
Crux, launched in 2023, provides a platform for connecting developers, tax credit buyers, and financial institutions, facilitating the transaction and management of these credits. The market for transferable tax credits is expected to reach $20-25 billion by the end of 2024, with rising demand and prices.
Through the partnership, Nasdaq clients will gain access to Crux’s platform and expertise, helping them integrate transferable tax credits into their sustainability strategies and realize significant cost savings. Crux Co-Founder & CEO Alfred Johnson highlighted the growing opportunity for companies to directly invest in clean energy and domestic manufacturing, with Nasdaq playing a key advisory role.
Nasdaq emphasized that with over $12 billion in available credits, the partnership is well-positioned to assist clients and their advisors in exploring how these tax credits can enhance their sustainability goals and reduce their tax obligations.
In a LinkedIn post announcing the collaboration, Alfred Johnson, Co-Founder & CEO of Crux, said:
Transferable tax credits represent the largest ever opportunity for companies to invest directly in clean energy and domestic manufacturing. Companies are increasingly thinking of these credits in the context of their broader sustainability strategy and relying on advisors like Nasdaq to put innovative strategies together.
In a blog post announcing the new collaboration, Nasdaq said:
With more than $12 billion of credits available today, Crux and Nasdaq ESG Solutions are well-positioned to help clients and their legal and tax advisors new to the market explore how transferable tax credits may be available to enhance clients’ sustainability strategies and reduce federal tax liability.
