Q. Why should I sell my tax credit?
You may want to sell a Tax Credit if your credit is larger than your tax liability. You should consult with a tax professional or other advisor to find out whether it is in your best interests to sell your Tax Credit.
Q. How much will my tax credit sell for?
At this point there is no market data on Tax Credit sales pricing given no sales have occurred. We expect sales pricing to vary due to various factors over time (e.g., type of Tax Credit, etc.).
Q. Should I register with you even if my credit has not been earned?
Yes, we encourage you to register even if your Tax Credit has not yet been realized. Your registration allows us to place you on our priority list, send you further information, and begin the process of matching you with a potential buyer.
Q. If I sell a tax credit, who will keep track of the sales?
The IRS is expected to publish a tracking process for tax credit sales. We also will accurately track and account for tax credit transfers.
Q. Are there state tax benefits from the same activity that generates a transferable state income tax credit?
Some transactions give rise to both federal and state tax incentives (state tax credits are not sold by United States Tax Credit Alliance). For example, Section 170(h) allows for a federal deduction for real property charitable contributions, which can also produce a transferable state tax credit for donations completed in New Mexico, Colorado, and Virgina.
Q. Do I pay tax on the money I receive for the sale of my tax credit?
No. Section 6418 (b) (2) provides that amounts paid for tax credits are not included in a sellers gross income.