Posts Tagged ‘tax credits’
Who Monetizes Investment Tax Credits?
There is a deep market for U.S. Federal investment tax credits sought by highly profitable, usually non-capital-intensive service companies. Since the mechanism for transferring the benefit of these credits from a user of capital equipment (which is unable to use the tax credit) to an owner (which seeks tax credits to reduce its Federal income…Read More
Tax Credits and Renewable Energy Equipment
The Problem with Tax Credits Ever since the first 7% Federal investment tax credit was enacted by Congress in 1962, a recurring problem has been the issue of how to make this benefit available to companies that are not currently taxable or are unable to carry back the credit against prior years’ tax liability. Many…Read More