Tax Credit Transfers: What CPAs Should Be Telling Their Clients
Transferable tax credits have moved from a niche clean-energy topic to a planning conversation clients are bringing to their CPAs. Under IRC Section 6418, businesses and individuals with federal tax liability can buy eligible credits from project developers at a discount. That means a lower tax bill, with no need to own or run an energy project.
This session gives CPAs a practical framework for advising clients on credit purchases. We’ll cover how the transfer market works and which clients are strong candidates. We’ll also cover the diligence and risk questions to raise before a client signs a purchase agreement, so you can confidently answer the question your clients are starting to ask.
Learning objectives. After this session, you’ll be able to:
- Explain how credit transferability under Section 6418 works and which credits qualify
- Identify client profiles that are strong candidates for buying credits
- Evaluate pricing, timing and how a purchase fits into estimated tax payments
- Recognize the main risks, including recapture, excessive credit transfer penalties and diligence gaps, and how insurance and indemnities address them
- Walk through the transfer process, from the purchase agreement to the IRS pre-filing registration to reporting on the buyer’s return
November 23, 12:00 PM — 1:00 PM CST
Field of study: Taxes | Level: Intermediate | Prerequisites: Basic understanding of federal business taxation | Advance preparation: None | Delivery method: Group Internet-Based | CPE credit: 1 hour