US investor group clinches tax credit deal for $1.5 bln renewable power acquisition

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Invenergy Renewables, Blackstone and Canada's second-largest pension fund said on Wednesday they struck a deal with Bank of America to help buy wind and solar plants worth $1.5 billion, capitalising on a new tax structure included in President Joe Biden's landmark climate law.

to help buy wind and solar plants worth $1.5 billion, capitalising on a new tax structure included in President Joe Biden's landmark climate law.Inflation Reduction Act

Invenergy said in a statement it agreed to sell tax credits worth $580 million to Bank of America, and put those funds towards buying 14 projects from American Electric PowerPolicymakers hope the new system will bring more money from fresh sources into renewables projects which have long relied on a limited group of large banks which can handle the process of buying equity stakes and taking the associated tax breaks.

It "creates a financeable transferability product that will be used to scale the growth of renewable energy," Fang said. Analysts at investment bank Credit Suisse have estimated the IRA could lead to the generation of tax credits worth $576 billion by 2031.

 

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