On October 10, 2023, Evergrow, a clean energy financing company, announced the successful completion of a clean energy tax credit transfer on its platform, one of the first of its kind. This milestone transaction follows the recent release of tax credit transfer guidance by the Internal Revenue Service. Wilson Sonsini Goodrich & Rosati served as Evergrow’s counsel in the transaction.

Tax credit transfers offer a new avenue to finance clean energy development in the United States (U.S.). These transactions are made possible by the Inflation Reduction Act of 2022 (IRA), which represents the largest clean energy investment in U.S. history. Under the IRA, developers and owners of clean energy projects can sell their tax credits to raise funds. With demand for clean energy tax financing projected at more than $80 billion by 2031, this financing plays a crucial role in covering expenses associated with the construction of various clean energy projects, including solar, battery storage, and electric vehicle chargers.

The investment tax credit (ITC) covers a commercial solar installation in Connecticut. It was developed by Davis Hill Development, the seller of the ITC.

By leveraging technology to establish a modern clean energy financing platform, Evergrow seeks to improve access to financing for developers of all sizes and accelerate the transition towards a sustainable economy.

The Wilson Sonsini team that advised Evergrow on the transaction was led by Scott Zimmermann, Nicole Gambino, and Jessica Remlinger.

For more information, please see Evergrow's news release. Additional coverage can be found on Power Finance & Risk, Solar Power World, and Energy Storage News.