Schneider Electric Tax Credit Advisory Services: The State of the Transferable Tax Credit Market
In 2025, transferable tax credits continued to deliver on their promise: unlocking a diverse pool of new corporate investors, accelerating clean energy investment, and simplifying pathways to decarbonization for corporate buyers throughout the United States. SE’s Tax Credit Advisory Services team (TCAS) expanded its client base significantly and helped close hundreds of millions of dollars in transactions. Despite legislative changes under the One Big Beautiful Bill Act (OBBBA), the market for transferable tax credits continued to grow, and we expect corporate buyers to continue benefiting from substantial tax savings in 2026 and beyond.
1. The New Tax Credit Legislative Landscape
Much of 2025 was spent reckoning with the expectations and eventual implications of the OBBBA. The final bill was signed in July, which affirmed transferability and introduced stricter phase-out timelines for several asset classes.
- Energy storage, nuclear, geothermal, and hydropower remain eligible under original timelines.
- Tax credits from wind and solar projects face accelerated phase-out treatment and clarity around qualifying for the ‘Beginning of Construction’ safe harbor provided by the Treasury Department.
Key Takeaways for Corporate Buyers:
Reliable Credit Supply: We expect ample tax credit investment opportunities in 2026 and beyond. While energy storage, nuclear, geothermal, and hydropower projects remain eligible under their original timeline, wind and solar developers are rushing to secure eligibility before the July 4, 2026, begin construction deadline. Projects that do qualify under safe harbor rules have 4 years to be placed into service. Advanced manufacturing production tax credits, clean fuel production tax credits, and other transferable tax credits continue to be available as well.
New Regulatory Challenges: New Foreign Entity of Concern (FEOC) restrictions and stricter safe harbor rules increase due diligence needs, but the TCAS team is equipped to evaluate these matters and manage compliance.
Looming Net-Zero Targets: Tax credit transfers remain a cost-effective lever for meeting near-term decarbonization goals. The process requires internal alignment among key stakeholders and decision-makers, as well as an understanding of the environmental and financial benefits.
2. Corporate Tax Liability
The OBBBA provided new avenues for corporations to reduce tax liability with bonus depreciation, R&D expensing, and other tax benefits. This reduced buyer appetite for clean energy tax credits, leading to slightly lowered average tax credit pricing, particularly for ITCs, and the market became more buyer-friendly in the second half of 2025. Early indicators in 2026 show renewed interest in TCTs, and pricing is expected to stabilize as demand rebounds.
3. Tax Credits and Decarbonization Goals
Schneider Electric’s TCAS is uniquely positioned to pair TCTs with other decarbonization levers, including offsetting the cost of renewable energy certificates (RECs), carbon offsets, and energy efficiency projects. We have expertise in pairing project RECs with tax credit purchases as well as utilizing tax credit-generated savings to fund other decarbonization efforts.
For example, Schneider Electric North America has adopted this approach in several tax credit transactions. The company achieved 100% renewable energy in North America by utilizing the savings generated from the acquired tax credits.
Now is a pivotal moment for corporate sustainability as the number of corporate net-zero commitments continued to grow in 2025. 2030 deadlines are approaching fast, and cost-effective solutions are available to help companies meet their decarbonization goals.
Why SE’s Tax Credit Advisory Services Team?
TCAS leads the market as a buy-side clean energy tax credit advisor for Fortune 500 investors, delivering:
- High-quality tax credit investment opportunities
- End-to-end transaction support from project sourcing to execution.
- Expertise in aligning financial and environmental benefits so clients achieve their decarbonization goals.
The SE TCAS team has executed billions in tax credit transfers across diverse asset classes, deal sizes, terms, and timelines. The bottom line is that TCTs remain a scalable and innovative tool for cost savings and climate leadership. Now is the time to act.