On December 27, 2023, specialized components manufacturer Broadwind (NASDAQ: BWEN) announced that it had entered into a definitive Tax Credit Transfer Agreement with MarketAxess Holdings Inc. (NASDAQ: MKTX), the operator of a leading electronic trading platform for fixed-income, to sell approximately $15 million worth of earned Advanced Manufacturing Production Credits. These credits are an integral part of the Inflation Reduction Act (IRA). Wilson Sonsini Goodrich & Rosati advised MarketAxess on the transaction, one of the first to close involving the sale of tax credits under Section 45X of the IRA. 

In addition to the earned Section 45X Tax Credits, Broadwind has also agreed, on a quarterly basis, to sell to MarketAxess Section 45X Tax Credits generated in 2024. These tax credits are specifically designed to incentivize clean energy manufacturers in the United States, including those involved in the production of wind towers.

Broadwind’s eligibility for these tax credits is based on its prior domestic production and sale of eligible wind turbine components, which were carried out before the agreement was finalized in 2023. Under the provisions of IRC section 6418, the tax credits will be assigned to MarketAxess.

The Wilson Sonsini team that advised MarketAxess on the transaction was led by Scott Zimmermann, Nicole Gambino, Matt Bogdan, and Kate Ashbolt.

For more information, please see Broadwind’s news release.