Invenergy-led deal for AEP renewables launches clean energy tax credit market
Justin Paget
American Electric Power (NASDAQ:AEP) said Wednesday it completed the sale of its 1,365 MW renewables portfolio to a partnership owned by Invenergy, CDPQ and funds managed by Blackstone, at an enterprise value of $1.5B including project debt; AEP said it nets ~$1.2B in cash after taxes.
Bank of America (NYSE:BAC) agreed to purchase $580M in wind energy tax credits from the Invenergy-led group, funding that helped the buyers raise debt from a group of banks and close the previously announced deal.
It is the first publicly announced deal of its kind from a new tax credit plan that is part of the Inflation Reduction Act climate law, and will be closely watched because it could launch far more companies to buy the credits than under current programs. 
Bank of America (BAC) said it is working on tax credit transfer deals in other sectors such as battery storage and carbon capture that receive subsidies under the climate law.
By transferring tax credits directly to banks and other buyers, clean energy businesses can now raise money more easily than they could under the existing system.

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