NextEra Energy anticipates $1.6-$1.8 billion in tax credit sales by 2026, fueled by Inflation Reduction Act.

NextEra Energy is on track to sell $400 million in transferable tax credits in 2023, and expects to bring in $1.6-$1.8 billion in tax credit sales by 2026, according to CFO Kirk Crews. Sales of tax credits, made possible by the Inflation Reduction Act, are growing faster than expected. However, it remains to be seen whether these tax credits will attract new capital to the market, or simply displace existing funds. Patrick Worrall, vice president of M&A solutions at LevelTen Energy, suggested that while renewable energy developers large and small will want to monetize these tax credit, it is uncertain who will be willing to buy them.