Transferable Tax Credits

Many states offer tax credits for investment in film production, historic rehabilitation projects, low income housing projects, renewable energy projects, and other initiatives as a way to spur economic growth, expand job opportunities, and enhance innovation.

Some states also allow the transfer of these credits to another taxpayer—which means you can reduce your state tax burden by purchasing other businesses' credits or increase your cash flow by selling credits you've earned.

Depending on the state, the type of credit, and the types of taxes that may be offset, the prices can range from $0.70 to $0.95 per dollar of credit purchased. For buyers, beyond the potential to deliver a high rate of return, transferable tax credits can also help you:

  • Reduce your total state income tax liability
  • Lower your effective state tax rate
  • Diversify your investment portfolio
  • Promote the arts and film, renewable energy, historic rehabilitation, affordable housing, or other industries you may support

We’re Here to Help

If you’re interested in leveraging this opportunity, Moss Adams can help you certify and transfer earned credits, identify available credits, and navigate the transfer process in any state that offers these credits.

Since 2007, we’ve helped our clients transfer more than $800 million in credits and performed incentive compliance and audit services for eligible projects in excess of $3 billion of total project costs.

With access to offline and online resources, Moss Adams can help ensure a real-time market rate and better position you for a timely transaction.

Our Services

Whether you’re interested in buying or selling tax credits, Moss Adams can help you navigate your options. Here’s a sample of some of our advisory services:

  • Providing buyers and sellers with insight on market pricing
  • Matching buyers to sellers who can’t use credits in their business
  • Showing buyers the inventory of credit options
  • Obtaining binding commitments for buying or selling credits before or after project completion
  • Giving buyers and sellers up-to-date resources on state transferable credit programs
  • Supplying technical memoranda and private letter rulings
  • Conducting buy- and sell-side diligence in tax credit transactions
  • Assisting with negotiating key tax terms of purchase and sale agreements
  • Filing the transfer forms necessary for transferring credits
  • Providing incentive consulting for applications, negotiations, modeling, and certification
  • Performing agreed-upon procedures and other incentive attestation services

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