Low Income Housing Tax Credits (LIHTC) are a federal tax benefit that lets developers raise money from investors by offering a reduction in tax bills in exchange for building or rehabilitating rental housing that must be kept affordable to low-income renters. For investors, LIHTC works like a long-term tax coupon that lowers their federal tax liability while supporting steady project returns, but it also requires following affordability rules and paperwork for many years.
renewable energy tax credits (retc)financial
Tax credits for renewable energy (RETC) are government rebates that directly reduce the taxes owed by companies or investors who build or fund wind, solar, battery, and other clean-energy projects. Think of them as a coupon that lowers the effective cost of a project; they matter to investors because they increase a project’s cash flow and potential returns, affect company valuations, and make some clean-energy investments economically viable where they otherwise wouldn’t be.
new markets tax credits (nmtc)financial
A federal program that gives tax credits to investors who put money into projects located in low-income or underserved communities. Think of it as a government coupon that lowers an investor’s tax bill in exchange for funding things like businesses, housing or community facilities; it makes deals cheaper or safer for investors and can boost after-tax returns while supporting local economic growth.
state tax creditsfinancial
State tax credits are reductions in the amount of tax a business or individual must pay to a state government, offered as incentives for activities like hiring, investing, or building facilities. For investors they matter because credits act like a cash-saving coupon that lowers a company’s tax bill and improves cash flow and profitability, which can change a company’s valuation and the attractiveness of specific projects.
tax credit transfersfinancial
A tax credit transfer is a legal way for the recipient of a government tax credit to sell or assign that credit to another taxpayer or investor who can use it to lower their taxes. Think of it like selling a discount coupon: the seller turns a future tax benefit into immediate cash, and the buyer pays less in taxes. For investors this creates a financing tool and potential return, but value depends on transfer rules, timing and the buyer’s tax appetite.
inflation reduction actregulatory
The inflation reduction act is a law designed to lower the overall increase in prices for goods and services in an economy, helping to keep the cost of living more stable. For investors, it matters because reducing inflation can lead to a healthier economy, potentially making investments safer and more predictable by preventing prices from rising too quickly.
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Billions in tax credit capital will help expand affordable housing, clean energy and jobs
MINNEAPOLIS--(BUSINESS WIRE)--
U.S. Bancorp Impact Finance announced record 2025 results for its tax credit syndications platform, raising approximately $5.7 billion in third-party capital from 58 institutional investors across 109 transactions, the highest annual total in the company’s history. These investments help finance affordable housing, renewable energy and economic development projects that create jobs and strengthen communities nationwide.
“More investors are optimizing tax strategies while achieving their community and sustainability goals, and more capital is reaching businesses that deliver housing, clean energy and economic opportunity,” said Bill Bayer, managing director of syndications and state clearinghouse at U.S. Bancorp Impact Finance. “2025 was a milestone year for our syndications team, reflecting our focus on customers, disciplined execution and measurable results.”
U.S. Bancorp Impact Finance, the community development and environmental finance division of U.S. Bank, is one of the few syndicators offering all three federal asset classes – Low Income Housing Tax Credits (LIHTC), Renewable Energy Tax Credits (RETC) and New Markets Tax Credits (NMTC) – and is recognized as a national leader in each. Through its state clearinghouse, it also syndicates state tax credits, giving investors a single source for diversified, outcome-driven opportunities.
At a glance, in 2025:
$5.7 billion in third-party capital raised
58 unique investors
109 transactions closed
6,812 affordable housing units financed through LIHTC syndications, supporting developments in 19 states
Renewable energy generation capacity of 4.4 GW (solar and wind projects) and battery storage capacity of 0.8 GW financed through RETC syndications
129 economic development projects financed through NMTC syndications, advancing jobs, healthcare, homeownership and small business growth
The 2025 results highlight the platform’s national reach and its ability to deliver complex, multi-asset strategies that meet client goals and create lasting results.
The year brought several additional milestones. U.S. Bancorp Impact Finance surpassed $7 billion in tax credit transfers since the Inflation Reduction Act authorized transferability in 2023.
“Demand for tax credit transfers has grown rapidly, as investors see the value, efficiency and scalability of this new solution,” said Maria Bustria, business development director for syndications at U.S. Bancorp Impact Finance. “We expect continued momentum as the market matures, drawing in new participants and expanding the flow of capital to renewable energy projects nationwide.”
Impact Finance also launched an unguaranteed LIHTC product and continued developing a complementary debt platform to provide more integrated, flexible financing options for investors and developers. In addition, the NMTC program was made a permanent part of the U.S. tax code in 2025, providing long-term certainty for investors and communities.
Since inception, Impact Finance has raised $28 billion in federal tax credit capital from 183 investors across more than 400 funds, supporting clean energy projects, affordable housing developments and job-creating community facilities. Through the state clearinghouse, Impact Finance has invested in 112 state tax credit programs in 39 states, raising more than $2.4 billion from nearly 100 investors.
About U.S. Bancorp Impact Finance
U.S. Bancorp Impact Finance, the community development and environmental finance division of U.S. Bank, is an industry leader in delivering tailored financing solutions that help clients drive inclusive economic growth and lasting environmental and community impact. Its tax credit investments and syndications, lending and other solutions help create affordable housing, spur economic activity in communities, restore historic buildings, develop renewable sources of energy and strengthen community development financial institutions (CDFIs). As of Dec. 31, 2025, it has, since inception, invested $60 billion in tax credit equity investments and raised $28 billion through federal tax credit syndications; it also has $8 billion in current loan commitments to affordable housing, renewable energy projects, CDFIs and other community development intermediaries. Learn more at usbank.com/impactfinance.
