Let’s not sugarcoat this—if you’re sitting on 45X or 45Q credits from 2022 or 2023 and haven’t monetized them yet, you’re bleeding money.
Icarus Fund has helped clean energy manufacturers, carbon capture companies, and startups sell millions in transferable tax credits and here’s what we’ll tell you right off the bat: waiting kills deals. Timing is everything. These credits have real dollar value. But only if you know what to do before they expire. So if you’re wondering how to sell 45X 45Q transferable tax credits before they lose value, you’re in the right place.
Let me break it down so you can stop leaving money on the table and actually close that gap in your cash flow.
What Are 45X and 45Q Credits (And Why You Should Care)
The 45X Credit – Manufacturing Gets Paid
Section 45X gives you tax credits for manufacturing clean energy components—solar cells, battery modules, inverters, and more. It’s a per-unit credit that stacks up fast. If you produced or sold any of those eligible components in 2022 or 2023, guess what? You probably have credits just sitting there.
The 45Q Credit – Carbon Capture Gets Compensated
This one’s for the carbon capture crew. Whether you’re sequestering, reusing, or disposing of CO₂—45Q is designed to reward you. And thanks to the Inflation Reduction Act, it’s now transferable. That means you don’t have to wait 20 years to realize the value. You can sell the credit now for cash.
Why Time Is Not On Your Side: 2022 & 2023 Credits Are Losing Value
Here’s the deal: credits don’t hold their value forever. Most buyers want 2022 or 2023 credits now, not later.
They know what I know: the longer you wait, the more legal risks stack up. Buyers want fresh credits, clean paperwork, and a fast close. Old credits start to raise eyebrows. Think of it like produce sell it while it’s ripe.
One client of ours sat on $6.3M in 45Q credits for a year and a half. By the time he called Icarus Fund, we had 3 buyers pass before finally closing at an 18% discount to face value. That’s over a million dollars gone because he delayed.
How to Sell Your Credits: Step-by-Step
Let’s get tactical. Here’s how to turn those transferable credits into actual cash:
Step 1: Confirm Your Credit Value
You can’t sell what you can’t prove. That means:
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Reviewing your Form 8933 (for 45Q) or Form 3468 (for 45X)
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Ensuring your facility or operation qualifies
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Matching credits to eligible output or sequestration volume
If you don’t have this documentation ready, stop here and get your CPA involved.
Step 2: Hire Someone Who's Done This Before
Selling tax credits isn’t like listing your car online. It’s a legal transaction between two companies involving the IRS, documentation trails, and legal contracts.
You need a tax advisor (hey, like us) who’s been through this rodeo—because messing up a 45Q transfer can trigger an IRS audit, kill a deal, or worse, disqualify the credit entirely.
Step 3: Find a Buyer
This is where it gets real. You can:
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Use a broker or platform (there are marketplaces for this now)
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Sell directly to institutional investors (think clean energy funds, oil & gas majors, Fortune 500s with ESG mandates)
Pro tip: Don’t just take the first offer. Some buyers will lowball. If you’ve got a clean credit with supporting docs, you should be getting 85–95 cents on the dollar.
Step 4: Sign a Letter of Intent (LOI)
This formalizes the buyer’s interest. It outlines:
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Estimated purchase price
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Timeline for closing
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Responsibilities for due diligence
Once the LOI is signed, you’re in motion. Now the buyer starts kicking the tires.
Step 5: Close the Deal and File with the IRS
You’ll need to file an IRS transfer election statement (under Section 6418). Both buyer and seller sign it. This gets attached to your tax returns.
And boom—you’re paid.
How to Maximize What You Earn
You’ve got one shot at selling each credit. Don’t botch it. Here’s how to get top dollar:
✅ Clean Documentation
Have your credit calculations, project certifications, and IRS forms ready. A buyer’s worst nightmare is inheriting a mess.
✅ Bundle if You Can
Buyers like volume. If you have multiple years or multiple credits (e.g., 45X + 45Q), bundle them to drive up price and interest.
✅ Act Early in the Tax Year
Most buyers plan their tax strategy early. List your credits before Q3 to get on their radar when budgets are open.
Avoid These Credit-Selling Landmines
Let me be blunt: I’ve seen businesses blow 6- and 7-figure deals because of rookie mistakes. Here’s what not to do:
❌ Don’t Wait Too Long
Buyers want current-year or last-year credits. 2022 is already old. 2023 is gold—if you move fast.
❌ Don’t DIY the Paperwork
This isn’t TurboTax. The IRS has very specific requirements for transferable credits. Missing one clause? Disqualified.
❌ Don’t Trust Unverified Brokers
If someone promises you “100 cents on the dollar” without seeing your docs—run. Legit buyers do due diligence. Scammers don’t.
⚡ Want to skip the guesswork and hit the ground running?
we put together a quick downloadable checklist you can use to prep and sell your credits fast.
