Section 45 PTC Due Diligence Guide

Transferable tax credits are sold at a discount to face value, providing attractive financial benefits to corporate investors. They are not without risk, however, and tax credit buyers should have a clear sense of how to identify, track, and mitigate relevant risks.

This due diligence checklist and documentation guide gives tax credit buyers, sellers, and their respective advisors a set of shared expectations on the required analysis and documentation for §45 production tax credits.

The guide covers:

• Major deal participants
• Seller/sponsor diligence
• Tax credit rate(s)
• Qualification
• Structure
• Prevailing wage and apprenticeship compliance/exemption
• Bonus credits
• Tax credit insurance