Timing of Transferable Tax Credit Purchases
Transferable tax credits are a useful tool for profitable companies looking to manage their tax position. When buying transferable tax credits, however, companies must consider their tax year-end in conjunction with that of the seller in order to claim the credits correctly and to the greatest extent possible.
- Overview on 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.
- Example scenarios depicting how the timing of tax credit recognition differs for buyers and sellers depending on various factors.
- Explanation of IRC §6418(d) in relation to the timing of tax credit generation and and transferee recognition.
Reunion Accelerates Investment Into Clean Energy
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.