With year-end tax planning, something to consider is the purchase of a transferable clean energy tax credit.  These tax credits have been around for many years, but final Treasury Regulations issued in 2024 allows for these credits to be directly transferred between UNRELATED taxpayers now! You do not need any connection to clean energy whatsoever to buy and use a clean-energy tax credit – no solar panels on your roof, no EV cars, etc.! Taxpayers with qualifying tax liabilities have saved millions in immediate and permanent tax dollars by purchasing these (IRS pre-registered) dollar-for-dollar credits at a discount.

     Clean-energy tax credits reduce tax liability dollar-for-dollar, but are sold at a discount, typically 8% – 10%, which results in what is effectively a discount on your tax liability.  The credits are transferred by clean-energy project developers and operators who can’t use them (e.g., because they are running tax losses), and want to take advantage of a current opportunity to monetize them.  There is a further opportunity to buy a larger credit, and take advantage of the opportunity to carry the credit back for up to three years and obtain a refund of prior years’ liabilities.

      Michael Minihan, Managing Partner of our alliance partner firm BX3 will be presenting “Transferability of Clean Energy Credits” as part of our ongoing CPE Series.

      The webinar program will be offered on BOTH December 5th and December 11th from 2-3PM. Participants may attend either or both sessions; however, a maximum of one (1) CPE credit may be earned in total.