IRON HILLS CREDIT BROKERAGE
Tax Credit Brokerage
Our tax credit brokerage specializes in facilitating the transfer of clean energy tax credits under the Inflation Reduction Act (IRA). We help businesses efficiently reduce their tax liability by purchasing tax credits from renewable energy project sponsors, without the complexity of traditional tax equity investments. Buyers can directly acquire these credits for cash, benefiting from significant tax savings and supporting the growth of clean energy projects.
Key Benefits
-
Direct Purchase for Cash: Buyers can purchase tax credits directly, eliminating the need to invest in project equity and reducing administrative complexity.
-
Discount Pricing: Tax credits are typically sold at a discount, allowing buyers to reduce their tax liability below the credit's face value.
Available Tax Credit Options
-
Investment Tax Credits (ITCs): Earned when a project is placed into service, calculated as a percentage of the investment made.
-
Production Tax Credits (PTCs): Earned on a per-unit basis (e.g., megawatt-hours of electricity). ​
Risk Mitigation
We assist buyers by offering tax insurance, letters of credit, and robust due diligence processes to mitigate risks. This includes verifying project qualification, cash flow sustainability, solid engineering, and adequate insurance. Our team ensures that your investment is protected against potential risks such as IRS penalties or project insolvency.
Our brokerage streamlines the tax credit transfer process, offering buyers a secure, efficient, and profitable way to reduce their tax liabilities while promoting clean energy investments.
Strategic Planning
Our strategic planning service is designed to help businesses optimize their use of clean energy tax credits under the Inflation Reduction Act (IRA). As the market for clean energy and renewable investments grows, navigating the complex landscape of tax credits and regulations can be challenging. We offer expert guidance tailored to your business needs, ensuring you can leverage these credits to maximize tax savings, drive profitability, and support sustainability goals.
The service begins with a thorough assessment of your firm's energy projects and tax liability. Our team of financial and energy experts will identify the most suitable tax credits. From there, we develop a customized tax credit strategy that aligns with your financial and operational goals, enabling you to take full advantage of available federal incentives while minimizing risks. We assist with timing decisions to ensure that your firm benefits from purchasing credits at the most advantageous price point, aligned with federal tax deadlines.
Beyond credit selection, our strategic planning also includes in-depth risk management support. We help firms evaluate potential buyers to ensure their tax credits are optimally allocated. By doing so, we help mitigate the risk of penalties, recapture, or financial loss, safeguarding your tax credit investments.
With our service, businesses can focus on growth and clean energy innovation, while we handle the intricate details of tax credit optimization, regulatory compliance, and risk management. Our holistic approach ensures that your firm not only saves on tax liabilities but also strengthens its position in the rapidly expanding clean energy sector.
Alternative Financing
Clean energy tax credits create unique alternative financing opportunities for businesses. By allowing the transfer of tax credits, firms no longer need to invest directly in renewable energy projects in complicated tax equity structures to benefit financially. Instead, they can purchase these credits from project sponsors, providing a more flexible and accessible way to reduce their tax liabilities.
These credits serve as a form of financial leverage, allowing businesses to acquire tax offsets at a discount. The cash savings generated from tax credit purchases can then be reinvested into core operations, innovation, or further sustainability initiatives. Additionally, because tax credits are transferable, they provide liquidity for energy project sponsors, giving them immediate capital to reinvest in further development.
Furthermore, tax credits can attract a broader range of investors. Companies that might not traditionally participate in energy projects due to high upfront costs or risk can now benefit from alternative financing structures that focus on acquiring tax credits. This opens the door for non-energy firms to enter the clean energy market and diversify their investment portfolios while contributing to environmental goals.
