Tax credits can provide very attractive return opportunities with limited risk, while also helping to drive renewable development to create a greener planet:
1. Return on investment: Buyers purchase tax credits at a discount and turn a profit. For example, buyer X purchases $10,000 worth of tax credits for $9,200 in cash. The buyer is able to reduce their tax liability by $10,000, having spent only $9,200. This represents a 8.7% (10,000/9,200) upfront return on their investment.
2. Accelerating the energy transition: When you purchase a renewable energy tax credit, your investment dollars help developers execute on projects. In many cases, this financing is the difference between a successful or unsuccessful clean tech project. Your investment contributes directly to more renewable development and a greener planet.