Clean Energy Tax Credit Transferability Services
Looking to buy or sell renewable energy tax credits? Baker Tilly’s renewable energy tax credit syndication practice is designed to provide you with efficient access to the transferable energy tax credit sale and transfer marketplace.
Clean Energy Tax Credit Transferability Services
The Inflation Reduction Act (IRA) introduced the concept of “transferability” — allowing a one-time transfer of a credit, essentially a tax rebate, from seller to buyer. Tax credit buyers are typically either C-corporations or individuals, trusts or family offices with passive income and an expected tax liability, looking to purchase single year tax credits to lower their tax liability.
Benefits of purchasing
No project involvement
Buyers can acquire the credit without being an owner in a clean energy development project.
Same-year usage
Buyers can target their capital directly for the tax year(s) in which they have tax liability to offset, eliminating the need to project for future tax years.
Tax-exempt
The discount between credit value and purchase price is not subject to tax for the buyer.
Offset quarterly tax payments
Buyers can use credits against quarterly estimated income tax payments.
