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

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.

Get Started