See “A Primer on Carbon-Negative AI Data Centers” for more on this topic
Impact Capital Partners is proud to serve as Placement Agent for NewYork GreenCloud (NYGC), helping raise equity and debt for their carbon-negative biomass power plants powering AI data centers. These projects represent a new class of climate-aligned infrastructure: baseload renewable energy that removes carbon from the atmosphere and monetizes environmental attributes to enhance investor returns. You can read more about NYGC’s first project here.
One of the most important tools in financing these projects is the Investment Tax Credit (ITC), and the recent passage of the One Big Beautiful Bill Act (OBBBA) significantly improves how those credits can be monetized.
What is the OBBBA?
Passed by the Senate in July 2025 with broad bipartisan support, the One Big Beautiful Bill Act (OBBBA) makes key technical corrections to the Inflation Reduction Act (IRA). One of the most consequential changes for clean energy investors is how OBBBA streamlines the transferability of clean energy tax credits like the ITC.
Among its key provisions:
- Fixes “Excessive Credit Transfer” Risk: OBBBA allows credits to be transferred in aggregate rather than on a per-facility basis. This is crucial for portfolios or multi-phase projects.
- Clarifies Timing of Sale: The bill affirms that credits can be sold before project completion, based on reasonable expectations of eligibility.
- Expands Bridge Loan Options: By reducing uncertainty and confirming eligibility, lenders are now more comfortable offering ITC bridge loans, providing liquidity prior to project commissioning.
- Supports Market Liquidity: The bill’s clarity has already boosted activity on platforms like Crux Climate, which facilitates credit transfers between clean energy developers and corporate buyers.
You can read more in Crux Climate’s analysis.
Why This Matters for NYGC’s Biomass Projects
NYGC’s flagship project, the Buena Vista Biomass Power (BVBP) plant, generates significant ITCs under § 48 of the Internal Revenue Code due to its use of advanced biomass conversion technology and potential eligibility for energy community or domestic content bonuses.
Monetizing these credits efficiently is critical to overall project economics, and OBBBA enhances our ability to do just that:
- ITC Pre-Sale Confidence: With OBBBA clarifying the IRS will allow ITC sales based on reasonable expectations of eligibility, NYGC and its financing partners can structure pre-sale agreements or bridge loans that unlock capital earlier in the construction timeline.
- Simplified Credit Transfers: The ability to sell tax credits across a portfolio (rather than by facility) benefits NYGC’s pipeline approach and reduces administrative friction in multi-phase development.
- Enhanced ITC Bridge Loan Viability: Lenders now have more confidence in offering bridge loans backed by ITC sale proceeds, allowing developers like NYGC to minimize equity dilution or optimize construction timelines.
Impact Capital Partners’ Role and Forward Strategy
We are actively collaborating with Crux Climate to explore listing NYGC’s ITCs and corresponding ITC bridge loan on their platform. The OBBBA significantly strengthens the value proposition for both tax equity buyers and senior lenders, which we expect will accelerate capital formation for this project and others in NYGC’s pipeline.
By strengthening the ITC market and clarifying IRS positions, OBBBA enhances the financial attractiveness of clean baseload technologies like biomass… and by extension, the climate impact of institutional capital.
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