Capital markets technology and exchange company Nasdaq announced a new collaboration between Nasdaq ESG Solutions and sustainable financial technology company Crux, aimed at enabling clients to advance sustainability objectives and realize cost savings by taking advantage of the Inflation Reduction Act’s clean energy transferable tax credits.

Passed by the U.S. in 2022, the Inflation Reduction Act (IRA) allocated nearly $370 billion through a series of tax credits, loans, grants and subsidies to areas including renewable energy and industrial decarbonization solutions, and for the first time made these tax credits transferable, creating a new mechanism for funding energy transition projects by allowing clean energy developers and manufacturers to sell tax credits to third parties, and helping companies fund clean energy initiatives while reducing their federal tax liabilities.

Launched in 2023, New York-based Crux’s sustainable finance platform provides an ecosystem for developers, tax credit buyers, and financial institutions to transact and manage transferable tax credits created by the IRA. According to a recent report by the company, the transferable tax credit market is expected to more than double in 2024 to reach $20 billion – $25 billion by year end, with average pricing trending higher compared to 2023.

In a LinkedIn post announcing the collaboration, Alfred Johnson, Co-Founder & CEO of Crux, said:

“Transferable tax credits represent the largest ever opportunity for companies to invest directly in clean energy and domestic manufacturing. Companies are increasingly thinking of these credits in the context of their broader sustainability strategy and relying on advisors like Nasdaq to put innovative strategies together.”

Under the new collaboration, Nasdaq clients will be provided access to the Crux platform and its network of clean energy project developers and manufacturers, as well as Crux’s insights on the transferable tax credit market.

In a blog post announcing the new collaboration, Nasdaq said:

“With more than $12 billion of credits available today, Crux and Nasdaq ESG Solutions are well-positioned to help clients and their legal and tax advisors new to the market explore how transferable tax credits may be available to enhance clients’ sustainability strategies and reduce federal tax liability.”