Renewable energy tax credit deal expected to create more than 200 jobs

Impact Finance recently closed its first 45X deal, with more in the pipeline

U.S. Bancorp Impact Finance recently closed its first advanced manufacturing production tax credit (AMPTC) syndication transaction, or Section 45X transfer.

The U.S. Bank subsidiary facilitated the transfer between Unimacts Global LLC, a solar torque tube manufacturer and seller of the 45X tax credits, and the buyer, which was an existing U.S. Bank client. The 45X tax credits enabled Unimacts to open and expand its U.S. manufacturing facilities and is expected to create more than 200 jobs.

“Our financing allowed Unimacts to realize the value of the tax credit that ultimately enabled Unimacts to move production and manufacturing jobs back to the U.S.,” said Adam Altenhofen, Impact Finance senior vice president of Environmental Finance Production. “Underwriting tax credit transfers allows us to meet our clients where they’re at to help meet their business needs and goals, while furthering our commitment to support the onshoring of U.S. manufacturing. Additionally, our expansion with 45X tax credits diversifies our business and offerings to syndicated investors.”

The 45X manufacturing tax credit incentivizes U.S. manufacturing. Because of the tax credits, Unimacts expanded from its Las Vegas facility and opened a new facility that the company expects will eventually create around 150 jobs in Nevada. The company is also doubling the size of its Texas facility, creating more than 65 jobs north of Houston.

“This federal incentive has empowered us to invest in U.S. advanced manufacturing, revitalize local economies and create more jobs in America,” said Unimacts Global CFO Brandon Soule. “In just a short time, we’ve transformed our U.S. operations to add three factories and six operations centers.”

Timmi Kloster, Altenhofen’s colleague and senior vice president of syndications, said she and a collective U.S. Bank team are thrilled to have closed this first opportunity by selling to an investor base that is looking for efficient ways to save on their federal tax liability.

“U.S. Bank's entry into the 45X advanced manufacturing space will drive further investment in renewable energy domestic manufacturing efforts while also expanding the breadth of tax credit transfer offerings we are able to offer to our clients," she said.

Impact Finance announced earlier this year its entrée into the transferability space. For calendar year 2024, Impact Finance is on track to surpass $2 billion in transfers with 13 different investors and 21 different sponsors.

Underwriting 45X credits for Unimacts demonstrates Impact Finance's unique value proposition in its ability to leverage its Environmental Finance, Syndications and Sustainable Finance platforms. The entry into the 45X market aims to align with U.S. Bank enterprise commitments, including the $50 billion environmental finance goal through 2030.

“We’re excited to strengthen our foray into this space with elevated focus and excitement, as well as highlight our broader transfer platform, which is growing at a rapid pace,” said Impact Finance chief investment and product officer Sunil Rajpurohit. “Our team is committed to the existing and potential clients we serve, and supporting the buildout of domestic manufacturing and energy production in the most creative and efficient ways financially possible.”