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Clean Energy Tax Credit Transfer / Monetization (IRC §6418)
U.S. Treasury / IRS — transferability market (IRC §6418), private credit buyers and brokersSee programDeadline: Tied to the underlying credit. Transfer election is made on the tax return for the year the property is placed in service; the credit must itself still be available (e.g. 48E/45Y per OBBBA begin-construction / placed-in-service windows).
Under IRC §6418 (Inflation Reduction Act, retained post-OBBBA), the owner of an eligible clean-energy credit may SELL it to an unrelated taxpayer for cash. This is the "monetization" path for taxable project owners who cannot immediately absorb the credit — it pulls the credit value forward as upfront capital instead of carrying it forward. Distinct from Direct Pay / elective pay, which is the tax-EXEMPT path where Treasury pays the credit as a refund. In a capital stack: a taxable owner stacks the ITC + 100% bonus depreciation, then transfers the ITC for cash to cut net project cost; a tax-exempt owner instead uses Direct Pay (and may bridge the ~12-month wait with the IL EE Revolving Loan Fund). Engage a transfer broker plus tax counsel; buyer due-diligence and recapture indemnity drive the discount.
Program details
- Agency
- U.S. Treasury / IRS — transferability market (IRC §6418), private credit buyers and brokers
- Level
- Federal
- Category
- Tax Credit Monetization / Transfer
- Eligibility
- Any taxpayer earning an eligible clean-energy credit who lacks the tax appetite to use it currently — taxable businesses, as an alternative to carryforward. NOT for tax-exempt entities, which use Direct Pay / elective pay instead. One transfer per credit, to a single unrelated buyer, for cash only.
- Funding Amount
- Converts non-refundable clean-energy credits (48E/45Y ITC-PTC, 30C, 45X, 48C, etc.) into upfront cash by selling them to an unrelated taxable buyer. Market discount typically ~88 to 95 cents per $1 of credit depending on credit type, size, and indemnity. One-time cash election; the transfer payment is tax-free to the seller.
- Deadline
- Tied to the underlying credit. Transfer election is made on the tax return for the year the property is placed in service; the credit must itself still be available (e.g. 48E/45Y per OBBBA begin-construction / placed-in-service windows).
- Status
- open
- Project Types
- solar, storage, ev_charging, manufacturing
- Client Types
- commercial, industrial, developer
- Notes
- Completes the capital-stack monetization path. Pairs with: 48E/45Y ITC (the credit being sold), 100% bonus depreciation (OBBBA), and SBA/lease/C-PACE for the remaining capital. Decision fork — taxable owner -> §6418 transfer; tax-exempt owner -> Direct Pay bridged by IL-ICB-EERLF-001. Discount %, recapture indemnity, and current broker market flagged for verification at quote time.
Source: Grantya research. Confirm current terms with the administering agency before applying.