Baker Tilly Launches Fund Connecting Renewable Energy Tax Credit Buyers and Sellers

New investment vehicle streamlines access to transferable energy tax credit marketplace

CHICAGO--(BUSINESS WIRE)--Leading advisory, tax and assurance firm Baker Tilly has launched BT Renewable Energy Tax Credit Fund I, LLC, designed to facilitate the transfer of renewable energy tax credits between buyers and sellers. This fund provides businesses and high-net-worth individuals with efficient options to offset tax liabilities while helping renewable energy developers monetize tax credits to fund future projects.

The fund leverages expanded clean energy tax incentives under the Inflation Reduction Act (IRA), including a "transferability" provision. This feature allows tax credits to be transferred in a one-time transaction, offering buyers a tax-efficient solution without requiring direct participation in energy projects and giving sellers immediate access to capital.

“This fund bridges the gap between renewable energy developers and tax credit buyers, unlocking financial opportunities for both,” said Todd Carpenter, managing principal of Baker Tilly’s development and community advisory practice. “It’s a win-win solution that advances clean energy while delivering meaningful tax and economic benefits.”

Key Benefits

For Buyers:

• No project involvement: Acquire credits without in a clean energy development project.
• Same-year usage: Apply credits immediately to offset current-year tax liabilities.
• Tax-exempt transactions: The discount between credit value and purchase price is not subject to tax.
• Income tax offset: Use credits to reduce estimated quarterly income tax payments.
• Flexibility: Credits can be carried back three years or forward up to 22 years.
• Environmental impact: Support renewable energy initiatives.

For Sellers:

1. Efficient capital access: Monetize tax credits to fund new projects, reduce debt or support other business needs.
2. Retained benefits: Retain project cash flow and other tax attributes, such as depreciation. The proceeds received on sale are not subject to federal income tax.
3. Streamlined process: Transactions are managed with minimal friction and robust risk mitigation.

Baker Tilly’s seasoned real estate advisory team ensures compliance and mitigates recapture risks, while investor relations are supported through the Juniper Square platform. With decades of experience in federal tax credit syndication, Baker Tilly provides sellers and buyers with seamless, secure transactions backed by rigorous due diligence and risk management.

Learn more about Baker Tilly’s clean energy tax credit transferability services at bakertilly.com/specialties/clean-energy-tax-credit-transferability

About Baker Tilly (bakertilly.com)

Baker Tilly is a leading advisory, tax and assurance firm, providing clients with a genuine coast-to-coast and global advantage in major regions of the U.S. and in many of the world’s leading financial centers – New York, London, San Francisco, Los Angeles, Chicago and Boston. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP (Baker Tilly) provide professional services through an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Baker Tilly US, LLP is a licensed independent CPA firm that provides attest services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and business advisory services to their clients. Baker Tilly Advisory Group, LP and its subsidiary entities are not licensed CPA firms.

Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are independent members of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 141 territories, with 43,000 professionals and a combined worldwide revenue of $5.2 billion. Visit bakertilly.com or join the conversation on LinkedIn, Facebook and Instagram.