Stop paying more federal tax than you have to.
There is a legal, IRS-governed mechanism that allows profitable C-corporations to purchase federal tax credits at a discount and apply them dollar-for-dollar against what they owe. Most companies have never been offered one.
Here is how it works.
In 2022, Congress authorized the transfer of certain federal clean energy tax credits to unrelated third-party buyers under IRC §6418. Credits generated by qualifying carbon capture projects — verified, registered, and documented to IRS standards — can be purchased for cash and applied directly against federal income tax liability.
The buyer pays less than face value for the credit. The credit offsets tax dollar-for-dollar. The spread is the buyer's return.
At 88 cents on the dollar, a company that purchases $1,050,000 in credits to cover its full federal tax liability pays $924,000 — and keeps $126,000 it would otherwise have sent to the IRS. That is a 13.6% return on a dollar that was already spoken for.
This is not a deduction. It is not a deferral. It is not a gray area.
A deduction reduces taxable income. Its value depends on your tax rate. A credit reduces the actual tax owed — dollar for dollar, rate independent, immediately. The statutory framework, the IRS registration process, the transfer election, the filing mechanics — all of it is defined and documented. This is how the law was written to work.
Who Tends to Be a Fit
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Typically the most straightforward profile. Corporate taxpayers generally avoid the passive activity limitations under IRC §469 that complicate individual analysis. If you're a profitable C-Corp with meaningful federal tax liability, the structure is usually straightforward to evaluate.
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These can work, but the analysis depends on ownership structure, income type, and how the credit flows through to the ultimate taxpayer. More moving parts — still very doable with the right advisor team.
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Real interest here, but individual-level use requires careful passive activity analysis, income characterization review, and advisor interpretation of evolving guidance. We're candid about what's clear and what's still being worked out in practice.
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Often well-positioned, because they already have the legal, tax, and accounting infrastructure to evaluate complex structures. The diligence we deliver tends to be exactly what their existing teams expect.
The right question isn't "can I buy credits?" It's "can my advisors get comfortable with the structure?"
A serious review covers:
Taxpayer entity type and tax profile
Federal tax exposure and timing
Credit type and IRS registration
Passive activity considerations under §469
Documentation quality — lifecycle assessment, verification, legal opinion
Transfer mechanics and filing requirements (Form 3800)
Recapture analysis
Tax liability insurance options
Implementation timing
Your CPA and tax counsel run the diligence. We organize the materials, coordinate the counterparties, and answer the questions they raise. By the time they're ready to give you a recommendation, they've seen everything they need to see.
For High-Net-Worth Taxpayers Specifically
A more candid conversation.
We get a lot of inbound interest from individual taxpayers and families with significant federal tax exposure. That interest is well-placed — the underlying framework is real, and the economics can be meaningful.
But we're going to be honest with you on the first call: individual-level use of transferable credits is more complex than corporate use. The passive activity rules under §469, the characterization of credit-generated tax benefits, and the way various advisors are currently interpreting evolving guidance all matter.
For most high-net-worth situations, the cleanest path is to deploy credits inside a corporate entity within your structure — a C-Corp holding company, an operating company, or a similar vehicle — where the analysis is straightforward.
For situations where individual-level use is being considered, we'll tell you what we see in the market, what your advisors will likely want to look at, and where the open questions are. No salesmanship. Just the real picture.
What to expect on the first call.
Step 1 — We listen. Tell us your taxpayer profile, your federal tax exposure, your entity structure, your timing, and who your advisors are.
Step 2 — We give you our read. Based on what you've shared, we'll tell you whether the opportunity appears worth a deeper review, what concerns we'd want your advisors to focus on, and what a realistic timeline looks like.
Step 3 — We pause. If it's not a fit, we say so. If it is, we ask for permission to coordinate with your CPA and tax counsel.
Step 4 — We hand the diligence to your advisors. They run their review. We support them. You stay focused on your business.