As the clean energy industry accelerates project deployment nationwide, the ability to transfer federal tax credits has become one of the most consequential financial tools for shaping project finance. With billions of dollars in transferable credits circulating across technologies — from solar and wind to manufacturing, storage, and nuclear — standardizing these credit transfer transactions can help attract new investors. ��ACP convened leading developers, legal experts, and market innovators to explore the state of play and introduce a new standardized Investment Tax Credit (ITC) transfer agreement form.��

Key Takeaways��

• The market for buying and selling clean-energy tax credits is growing fast: Tax credit transfers have scaled dramatically — from under $10B in 2023 to an estimated $40B this year — and are diversifying beyond wind and solar.��
• ACP and industry partners have introduced the new Tax Credit Transfer Agreement (TCTA) to make deals more accessible to a broader range of market participants: While every deal has a handful of unique attributes, a great many transfer deals can benefit from a standard template that incorporates provisions common to most deals. ��The new TCTA form presents tax credit buyers and sellers with a common starting place to transact transfer deals. ACP’s goal in creating the form with its industry partners is to make the form broadly available and widely used similar to the ubiquitous ISDA framework for derivative transactions. ��
• This is just the first step — more standardized tools are coming: Experts expect similar templates for other credits like 45Y production tax credits and 45X manufacturing incentives further expanding the pool of potential tax equity investors. As these tools roll out, buying and selling credits should become easier, helping clean energy scale more quickly.��

Download TCTA Form

��A Growing Tool for a Growing Market��

“The market is only two years old,” noted Johnson — yet it has matured at remarkable speed. In 2023, an estimated $7–9 billion in credits changed hands. In 2025, that number will exceed$40 billion, with especially strong growth in battery storage, clean fuels, manufacturing, and nuclear energy. Large developers like Clearway report that traditional tax equity remains strong, but transferability has become a crucial supplement — particularly after IRS guidance and safe harbor rules helped clarify how deals should work. ��

According to Orrick’s Alejandra Garcia Earley, demand now spans nearly every available tax credit category — from 45X manufacturing incentives to EV charging credits — demonstrating just how central transferability has become in financing new infrastructure.��

Corporate Buyers Are Fueling Liquidity — and Raising the Bar��

An ever-increasing number of new corporate buyers are entering the market, oftentimes with little prior experience in clean energy finance. Unlike banks or traditional tax-equity investors, these companies often do not have in-house tax teams or transaction lawyers with the necessary experience in these specific transactions. As Norton Rose’s Hilary Lefko explained, “These buyers tend to lean heavily on counsel, third-party advisors, and insurance rather than deep project-level diligence.” ��

This evolution is healthy — it means the market is expanding — but it also reinforces why consistent documentation and predictable processes are needed. As Johnson put it, “First-time buyers want to transact on something tested, known, and accepted across the market.” Without those guiderails, buyer uncertainty risks limiting the pool of new market entrants at a time when they are desperately needed. ����

A Standard Transfer Agreement — Designed for Speed and Confidence��

As the tax credit transfer market has grown, nearly every deal has required bespoke contract drafting. ��This has served as a market constraint. ��The new TCTA form aims to eliminate that constraint by reducing up-front transaction costs, shrinking timelines and encouraging consistent deal terms. �� ��

“People want to move fast,” Clearway’s Ryder said, emphasizing that developers and buyers alike benefit from reducing the amount of time spent repeatedly redlining the same provisions. The template gives parties a commercially balanced, middle-of-the-road starting point that reflects market norms to serve as a fair baseline informed by hundreds of completed transactions.����

The document is intentionally flexible: it works for single-asset ITC transactions today, but can be adapted for portfolios, production credits, or other emerging incentives.��

Driving Scale Through Standardization��

Panelists repeatedly highlighted that standardization is not just administrative — it is foundational for market growth. When parties start from a shared baseline, legal negotiation shrinks, deal timelines shorten, and more market participants can enter with confidence. That makes investment cycles more predictable and helps reduce transaction costs — particularly for smaller sellers or first-time buyers where those costs might otherwise consume a disproportionate share of deal value. ��

Johnson estimated that the total cost burden on credit buyers and sellers can reach 3–7% of deal size, meaning efficiency improvements directly translate into more dollars available for additional deal flow to facilitate clean energy deployment. Standardization also allows technology platforms to automate parts of the process, bringing further speed and scale to the market.��

What Comes Next: PTCs, Manufacturing Credits, and Technology-Neutral Standards��

The consensus among these experts on next steps was clear: more standard templates are coming. Ryder pointed to the rising level of public and political support for domestic manufacturing credits like 45X, making that an ideal area for document standardization.��

Panelists also argued that 45Y production tax credit transfer deals should be standardized soon, since only minor revisions are needed once revenue recapture and timeline provisions are adjusted. Garcia Earley explained that once a PTC version is created, it will be relatively easy to adapt across multiple emerging credit categories including 45X, 45Y, and similar incentive frameworks.��

Turning Industry Collaboration into Market Acceleration����

In closing, ACP’s Sandberg underscored why this work matters: the ability to monetize credits efficiently is now central to financing clean energy projects and a key component to continue deploying enough clean energy to help meet skyrocketing demand for energy. The new agreement reflects months of collaboration among sponsors, financiers, lawyers, and market intermediaries — each contributing to a shared document that lowers barriers to entry to the tax credit transfer market and encourages wider market participation. ��

As Ryder put it, “We invested the time because we care about where the industry is going. These transactions need to happen efficiently for clean energy deployment to continue.” The form is now being released publicly through ACP so that developers, buyers, platforms, and institutions can adopt it widely — similar to other industry templates like ISDA agreements in global derivatives markets.��

Tax credit transferability has become a core financing mechanism supporting America’s clean energy buildout. The TCTA form is designed to help buyers and sellers move with more speed and certainty as billions of dollars of capital flows through the system. And as Sandberg reminded the industry, standardization is not the end of innovation — it is the key to unlock it, paving the way for broader participation, lower barriers to entry, and the next wave of market expansion.��

Watch the full discussion here.��

Download TCTA Form

Key Takeaways

• Artificial intelligence (AI) and data centers are driving unprecedented energy demand growth, shifting industry conversations from megawatts to gigawatts.
• Permitting reform and policy consistency are critical to maintaining American leadership in both AI and energy security.
• An all-of-the-above domestic energy approach—including wind, solar, storage, nuclear, and natural gas—is essential for reliability and national security.

The race for global AI leadership isn’t just about algorithms and computing power—it’s increasingly about who can provide the most reliable, secure, and abundant energy to power the data centers that support the technology.

American AI development is rapidly driving the need for more of data centers due to the vast computational power required for training and running complex models. These data centers require electricity to power their infrastructure and the cooling systems which manage the heat generated by their operations.

ACP’s recent PowerTalk explored this critical intersection between America’s energy strategy and our technological future. The conversation—moderated by ACP CEO Jason Grumet and featuring panelists Helen Toner of Georgetown’s Center for Security and Emerging Technology, Harry Krejsa of Carnegie Mellon’s Institute for Strategy and Technology, David Carroll of ENGIE North America (and ACP’s Board Chair-Elect), and Heather McGeory of CoreWeave—offered perspectives from both energy producers and technology companies at the forefront of AI development.

AI is Driving Unprecedented Energy Demand

Data centers and AI infrastructure are creating energy demand at scales previously unimagined. “The demand in terms of volume and energy that we could use—we used to have conversations about megawatts and now we have conversations about gigawatts,” explained Heather McGeory of CoreWeave, referring to conversations around powering individual data centers. This is already happening today, as energy demand is forecasted to increase by as much as 50% by 2040, according to a study from S&P Global Commodity Insights.

This exponential growth represents both a challenge and opportunity for American energy development. As David Carroll of ENGIE noted, “It’s no longer a conversation about ‘can you just bring a solar project.’ It’s how can we pair technologies associated with wind, solar, battery, and even now some peakers or natural gas generation so that we can have a data center that has firm reliable power.”

Energy Security is National Security

The location and security of our energy infrastructure directly impacts America’s technological leadership position.

“I certainly think that energy permitting—making sure that it’s actually possible to build new energy sites—is genuinely a huge deal,” emphasized Helen Toner. “Having a really strong domestic base that you’re able to build on is very valuable… From a sort of high-level strategic perspective, these are really valuable assets and it makes sense to want to have them at home,” she continued, highlighting the strategic importance of domestic energy production.

Harry Krejsa further explained that the newest energy technologies offer the best security advantages: “The most defensible and resilient technologies are the most shovel ready, fastest onto grid and often are the lowest carbon emitting—but their national security imperative and value often have nothing to do with their carbon emission.”

Policy Certainty is Critical for Meeting Energy Demand

Meeting these massive energy demands will require embracing all available domestic energy resources. “We always want to be finding the most modern and efficient energy solutions possible, and I really think that includes renewables and nuclear. I don’t think we can get through any of this without nuclear,” stated McGeory.

However, policy uncertainty is creating investment challenges. Carroll emphasized: “We’ve been investing about $3 billion a year in the U.S. market and that’s slowed down because of the policy uncertainty, but also tariffs.”

As America navigates the dual challenges of energy security and technological leadership, the clean power industry stands ready to deliver the reliable, domestic energy resources needed to power our AI future. As Jason Grumet concluded, “We are in a race for digital dominance… The efforts to make sure that we are scaling U.S.-based technology as the backbone of the data centers and the reliable, clean, secure electrons that our members are providing is really the point of our work.” This will require smart policy, streamlined permitting, and a commitment to building American energy systems that support both our economic and national security objectives.

Watch the full PowerTalk here.

• American clean energy production creates family-supporting jobs and substantial local tax revenue that powers schools, roads, and emergency services
• Transparent community partnerships and addressing local questions directly build successful domestic energy projects
• ACP’s Local Affairs Committee unites diverse expertise to ensure domestic energy development benefits rural communities while strengthening America’s energy leadership

When clean energy projects take root in rural communities across the country, they bring more than just new infrastructure—they deliver prosperity. These American energy projects generate substantial tax revenue that funds local schools, improves rural infrastructure, and buoys essential community services. Supporting these successful partnerships between communities and energy developers is ACP’s Local Affairs Committee, working to ensure clean energy’s growth strengthens local communities nationwide while increasing American-made energy production.

In ACP’s recent Member Group Spotlight: ACP’s Local Affairs Committee PowerCast, Hilary Clark (ACP’s Senior Director of Social Licensing) hosted an insightful discussion with committee leadership including Stephen Goodin (Chair, NextEra Energy Resources), Lara Hamsher (Vice Chair, AES), Matt Wagner (Past Chair, DTE Energy), and Bevan Augustine (Past Vice Chair, RWE) about the community work they do and the insights they learn from peers in the Local Affairs Committee. These energy veterans shared valuable perspectives on building successful community relationships.

ACP members can join the Local Affairs Committee .

Building Trust: Community Engagement and Transparent Communication

“Effective local engagement isn’t just about checking boxes—it’s about putting the time in with the community stakeholders,” noted Stephen Goodin from NextEra Energy Resources. “When we take time to understand local priorities and demonstrate how our projects support those goals, we’re more likely to achieve permitting success.” The committee emphasizes that early, transparent communication helps communities see how clean energy production can complement local values and priorities.

This foundation of trust creates an environment where communities can fully appreciate the economic advantages that clean energy development brings to rural America.

Delivering Tangible Community Benefits: Local Investment

Clean energy projects are revitalizing rural economies across America. “The tax revenue from these projects often represents the largest investment some communities have seen in decades,” explained Matt Wagner of DTE Energy. “We’ve seen firsthand how this revenue strengthens schools, improves roads, and enhances emergency services.”

According to Lara Hamsher from AES, “When we can demonstrate how harvesting domestic energy resources translates to direct community benefits, we transform the conversation from abstract policy discussions to real kitchen table issues that matter to families.”

Addressing Concerns Respectfully: Commitment to Solutions

The committee recognizes that communities rightfully ask how projects impact their daily lives—from visual considerations to questions about reliability. “Listening is our most powerful tool,” shared Bevan Augustine of RWE. “When concerns arise, we address them with facts, research, and a genuine commitment to finding solutions. This respectful approach builds the trust necessary for successful projects.”

Strengthening America’s Energy Backbone

As America’s demand for electricity grows, the Local Affairs Committee’s work becomes increasingly important to ensuring that the expansion of domestic clean energy options strengthens communities while bolstering American energy security. Clean energy projects represent a unique opportunity to meet our nation’s power needs while delivering tangible local benefits. Through thoughtful engagement, transparent communication, and genuine partnership, the clean energy industry can continue to foster rural economic development while advancing America’s renewable energy goals.

By supporting the responsible development of clean energy resources in communities nationwide, ACP’s Local Affairs Committee is helping to build a more sustainable and economically vibrant future for rural America.

Watch the full Member Group Spotlight: ACP’s Local Affairs Committee PowerCast.