How Sustainability Leaders Can Benefit from Buying Tax Credits To Support Their ESG Goals

Are you an ESG and sustainability leader seeking innovative ways to advance your company's environmental goals? The Inflation Reduction Act (IRA) has paved the way for leaders like you to make an impact in clean energy initiatives through the purchase of tax credits. By using these credits, ESG and sustainability leaders can not only drive positive environmental change but also align with corporate ESG objectives. With the ability to reduce tax liabilities, earn economic returns, and support green energy projects, tax credits offer a powerful tool for advancing the company story and progress towards sustainability goals. Atheva serves as an invaluable resource for sustainability leaders seeking to leverage tax credits to support their company's ESG goals. 

Atheva provides sustainability leaders with a seamless platform to facilitate the buying of tax credits. First, you will work with our team of experts to understand your goals, both long-term and short-term. From there, our teams put together a curated list of matches based on your specific needs. Once matched, Atheva provides clear steps and outlines your needs for the seller to help fast track the transaction. From standardized contracts to a deal room, Atheva also provides the tools you need to seamlessly transact.

Tax credits are a new tool for sustainability leaders allowing them to expand their ESG story all while saving money for their company. Through the purchase of eligible energy tax credits, companies can significantly reduce their tax liabilities, thus freeing up resources that can be reinvested into sustainability initiatives or other environmental plans. Additionally supporting clean energy projects through the acquisition of tax credits contributes directly to the expansion of the ever growing renewable energy initiative. Who wouldn’t want to be part of accelerating climate financing! 

4 Things Sustainability Leaders Should Know About Tax Credits:

  • Tax Reduction: Tax credits serve as valuable assets that enable holders to decrease their tax liabilities. A credit is purchased at a discount, but the buyer is able to reduce their taxes based on the full value. On average, tax credits are purchased at a 5%-16% discount, allowing your clients to potentially save millions while supporting clean energy initiatives. For instance, a $50M credit may be sold for $45M, but the buyer can reduce their tax liability by $50M.

  • No Tax Implications On Gains: With that the income generated from the sale of tax credits is not considered gross income therefore is not subject to the U.S. income tax expense. This provides financial gain to companies without the burden of additional taxes. Sustainability leaders should familiarize themselves with the specific rules outlined in Section 6418 of the Internal Revenue Code to ensure understanding in order to maximize tax credits to their benefit.

  • Cash Not Ownership: It's important for sustainability leaders to know that tax credits can only be bought and sold in exchange for cash under the IRA. Purchasing tax credits does not grant any equity or ownership in the project. Thus, tax credits won’t have any direct impact on your net zero impact calculations, but can be a key component in your company story and path to reach ESG goals.  

  • Win-Win for Clean Energy Financing: By buying tax credits, ESG leaders can reduce their company tax liabilities, freeing up capital that can be reinvested into their business or sustainability initiatives. Meanwhile, project developers can access much-needed funding to finance clean energy projects, driving innovation and speeding up the implementation of renewable energy technologies across the U.S.. Sustainability leaders play a pivotal role in accelerating this growth and have the opportunity to support clean energy financing. By embracing tax credit transferability, companies can contribute to a more sustainable future while capitalizing on the financial benefits.


Now is the ideal time for ESG and sustainability leaders to integrate tax credits into their plans, using Atheva's expertise and seamless process to navigate these opportunities effectively. Our vision is to help every company contribute to a net zero future, and leveraging tax credits is a crucial step towards achieving this goal. 

Ready to take your sustainability efforts to the next level? Contact Us today to explore the potential of tax credits for your organization's green initiatives.





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