We focus on smaller and lower middle market clean energy tax credit holders, which are typically in the range of $2M - $30M. This part of the market is historically underserved and often unable to monetize tax credits. However, given new Transferability legislation and our ability to bundle several smaller tax credits together into a portfolio, we have a solution that makes your credits attractive for buyers.

• 45, 45Y: Clean electricity production

• 48, 48E: Clean electricity investment

• 45U: Zero-emission nuclear power production

• 45Q: Carbon oxide sequestration

• 45Z: Clean fuel production

• 45V: Clean hydrogen production

• 30C: Alternative fuel vehicle refueling property credit

• 48C: Advanced energy project credit

• 45X: Advanced manufacturing production credit

We consult with tax credit sellers to help them understand whether transferring Investment Tax Credits (ITC) or Production tax credits (PTC) make sense for their business. Additionally, as part of our due diligence process, we help sellers understand the wage and apprenticeship requirements under IRS Code 6418 when applicable. Lastly, we help examine for potential bonus credits associated with domestic content, energy communities, or low income areas.

Recapture risks are in most cases the responsibility of tax credits buyers within a 5 year window; however, credit sellers are responsible for “indirect “ transfers of ownership (i.e. a partner sells more than 1/3 of their ownership interest) , or have an increase in nonqualified nonrecourse financing in the year following the commercial operating date. In short, there needs to be long-term consensus amongst the tax credit seller ownership group in regards to these factors before transferring credits. Lastly, we require seller indemnity provisions to help mitigate certain risks.

• Tax credit sellers will preregister their credits with the IRS and obtain a unique registration number.

• We assist in the gathering of due diligence documentation and other information buyers require with respect to important deadlines.

• Market the tax credits to potential buyers, ensuring you find the right partner and price.

• Complete a transfer election statement with the buyer that includes your IRS registration number and administrative details.

• File tax returns as normal, while indicating the eligible credit has been transferred with the transfer election statement and potentially other documentation required by IRS guidance.

We have a standardized, repeatable platform that can significantly lower the administrative burden for small to medium sized business operators, providing a turnkey solution to sell credits. We prefer to facilitate quarterly transactions, which results in greater flexibility and assurance than waiting until April every year.