Broadwind Enters into Tax Credit Transfer Agreement with MarketAxess Holdings Inc.

Broadwind, Inc. (NASDAQ:BWEN) announced on January 28, 2025, that its subsidiary, Broadwind Heavy Fabrications, Inc. (BHF), has entered into a significant Tax Credit Transfer Agreement with MarketAxess Holdings Inc. The agreement outlines BHF’s commitment to sell up to $15,000,000 and $20,000,000 worth of Advanced Manufacturing Production Credits (Tax Credits) to MarketAxess for the years 2025 and 2026, respectively.

The Tax Credits are generated through the sales of “eligible components” manufactured at BHF’s production facilities, aligning with the guidelines set forth in the Internal Revenue Code. MarketAxess will pay for the Tax Credits on a quarterly basis at a purchase price of $0.935 per $1.00 of Tax Credits. Alongside this agreement, BHF will incur a broker’s fee and other related transaction expenses.

In support of BHF’s obligations under the Agreement, Broadwind, Inc. has also signed a parent guaranty known as the “Sponsor Guaranty” on the same date. BHF’s entitlement to the Tax Credits is based on its domestic production of critical inputs for wind turbine equipment.

The specific terms and conditions of the Tax Credit Transfer Agreement and the related Sponsor Guaranty can be found in full within the attached agreements, listed as Exhibit 10.1 and Exhibit 10.2, respectively. Additionally, a Cover Page Interactive Data File is embedded within the inline XBRL document attached as Exhibit 104.

This significant agreement marks a strategic move by Broadwind to leverage tax credits generated by its manufacturing activities and further solidify its financial position in the market.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Broadwind’s 8K filing here.

Broadwind Company Profile

Broadwind, Inc manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets.