The passage of the administration’s signature tax and spending bill on July 4, 2025 created a welcome degree of policy certainty for tax credit buyers. The bill preserved transferability as a mechanism, even extending the life of some clean energy tax credits.
To parse through what the “One Big Beautiful Bill Act” means for tax credit buyers, Crux recently held a webinar with panelists from CAC Specialty and Orrick. Panelists discussed credit pricing, what additional restrictions on solar and wind projects and foreign entities of concern (FEOC) could mean for the tax credit market, insurance trends, and key legal considerations for the second half of 2025.
While the full webinar is only available to Crux clients and partners, we’re sharing a few takeaways below to help buyers plan their approach to the second half of 2025.
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Buyers can transact with certainty in 2025 and beyond knowing that the signed bill reaffirmed the credit transfer mechanism. Under the bill, the tax credit transfer market is expected to continue to thrive for as long as the clean energy and manufacturing credits are available.
While the US Department of the Treasury is expected to release further guidance on the start-construction safe harbor later this summer, subject to the July 7 executive order, panelists noted that buyers should be largely insulated from further uncertainty — buyers typically do not advance any money toward credits until an asset is operational or credits are produced. Any ongoing risk of disallowance or recapture is on the seller via an indemnity and related credit support, including tax credit insurance.
Buyers should also note that legacy tax credits (i.e., those from projects that began construction before the tech-neutral tax credit regime began on January 1, 2025) remain available in the market. Policy updates in the OBBBA do not have retroactive application on these legacy credits.
Go deeper: Download our guide to risk mitigation in tax credit transactions
Many deals concentrate in Q4 due to tax-planning cycles. Buyers that prepare earlier in H2 can avoid getting stuck in bottle-necks around insurance, legal review, and funding logistics.
Crux has also found that buyers that transact earlier can benefit from wider credit availability and less competition. Conversely, buyers who transact late in H2 are more likely to experience pricing that reflects a higher degree of buyer competition.
The market is moving steadily toward standard form documentation and streamlined execution, especially among repeat participants. Buyers who are familiar with market-standard frameworks — or who work with counterparties that use them — may be able to transact more quickly.
Crux clients can access the full recording of this webinar. To unlock insights like this, contact us to join Crux.
