Why should I buy a tax credit?
Ordinarily, one dollar of state tax credit offsets one dollar of state tax liability. Because tax credits sell at a discount (i.e., buyers typically purchase a dollar of tax credit for less than a dollar), you can save money on your Federal income taxes.
How much will I spend for a tax credit?
The cost of tax credits cannot be predicted with precision especially in the current absence of tax credit sales at the Federal level. In addition, particular tax credits attributes may effect pricing (e.g., it is expected that Production Tax Credits will sell for higher pricing than Investment Tax Credits, etc.).
Can tax credits I buy be carried over to the following year if I don’t use them all?
Yes, provided that the credit has a sufficient carry forward period. Such determinations should be made by qualified tax professionals.
If I buy a tax credit and decide not to use it, can I later sell it?
There are statutory prohibitions against multiple transfers and the forthcoming Treasury Regulations will have impact on this issue.
What types of taxes can I use the tax credit to pay?
The Federal Transferable Tax Credits offset income tax liability (both corporate and personal). Such determinations should be made by qualified tax professionals.