Global law firmK&L Gates LLP recently advised Capital Community Bank (CCBank) on two USfederal income tax credit purchase transactions. These deals were made possible by the Inflation Reduction Act of 2022, which allows companies with federal income tax obligations to participate in clean energy financing by buying tax credits from project owners and developers.
In the first transaction, the firm advised CCBank in connection with its purchase of 2024 tax credits from solar and battery storage projects in Arizona, Arkansas, California, Illinois, Mississippi, and Texas. This deal involved both Section 45 production tax credits and Section 48 investment tax credits.The closing occurred on August 25, 2025, with the purchase of all of the tax credits in a single tranche.
In the second transaction, the firm counseled CCBank in connection with its purchase of 2025 Section 45Z production tax credits from the production and sale of ethanol from a facility in North Dakota. The first tranche of this deal closed on November 4, 2025.The closing for the second tranche is expected to occur in the first quarter of 2026.Section 45Z tax credits are available for the production and sale of low carbon transportation fuels.
The K&L Gates team advising CCBank provided structuring, documentation, due diligence, and closing execution for these transactions. Theteam was led by Washington, DC partner Marty Pughand Kansas City partner Brogan Sullivan, with support from Washington, DC associate Rebecca Kimand Kansas City associate Andrew Stephens.
Pugh stated: "The successful structuring and closing of these deals reflects our team's deep understanding of the tax and commercial aspects of clean energy tax credit transfers.We were able to leverage this expertise to help CCBank achieve its financial objectives."
CCBank President Matt Field added:"The K&L Gates team clearly understands these types of transactions inside and out, and provided clear and practical guidance in our first deals in this new market."