Basis Climate has announced the launch of its digital marketplace for transferable clean energy tax credits, giving tax-liable corporations a platform to discover, diligence and document their transactions securely and seamlessly.

The launch of Basis Climate’s exchange marks a significant milestone in the development of the market for U.S. clean energy tax credits. The Basis exchange not only provides matchmaking between buyers and sellers of credits, but also offers a transaction framework and client support to guide both parties through the sale. Documentation, registration and compliance are all included as part of the platform, allowing both sides to transact with confidence.

“Basis Climate is thrilled to launch our exchange and buyer education platform, which supports buyers in their commitment to environmental stewardship while also helping to reduce their corporate income tax liability,“ said Basis Climate co-founder and CEO Erik Underwood.

Underwood added that the launch of the exchange marks the first step in the company’s mission to offer a suite of tools to corporate buyers that include:

• Capital solutions that support market liquidity;
• Risk management for high-confidence transactions; and
• Analytics to support better price discovery compliance

A novel provision of the 2022 Inflation Reduction Act (IRA) effectively created a market for clean energy tax credits by allowing for their one-time transfer to other federal tax paying entities — thereby making it easier for developers to raise the capital they need to finance their projects. Basis expects the annual transfer volume of clean energy tax credits to grow to over $60 billion by the end of the decade, and is on track to being a significant player in this growing segment.

News item from Basis Climate