Guide
Timing of Transferable Tax Credit Purchases
Transferable tax credits are a powerful tool for profitable companies who want to manage their tax and cash positions. When buying transferable tax credits, companies must consider their tax year-end in conjunction with that of the seller to claim the credits correctly and maximize their value.
This articles discusses:
- The timing of when transferable tax credit purchases can be recognized by buyers
- The tax year in which a buyer can claim a transferred tax credit depends on the tax year of the seller that initially generated the credit
- Scenarios depicting how the timing of tax credit recognition differs for buyers and sellers depending on various factors
- IRC §6418(d) in relation to the timing of tax credit generation and and transferee recognition
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Reunion’s team has been at the forefront of clean energy financing for the last twenty years. We help CFOs and corporate tax teams purchase clean energy tax credits through a detailed and comprehensive transaction process.
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