What are Investment Tax Credits?
Investment Tax Credits (ITC) are federal tax credits that are part of the general business credit. They let individuals or businesses deduct a certain percentage of investment costs from their taxes. These credits are in addition to normal allowances for depreciation. The Inflation Reduction Act of 2022 made these tax credits transferable. Corporations with significant federal tax liability can now purchase these credits from other entities that create the tax credits, but are unable to use them.
We work with a top 20 CPA firm, with a robust tax credit practice, to issue all supporting materials for tax credit calculation and certification purposes. Those materials include: projections, tax returns, financial statements and memorandums as needed.
Great for Corporations or
Anybody that Pays Federal Taxes.
Where Do Investment Tax Credits Come From?
Green energy is the future, and governments worldwide are encouraging households to make the switch. The US government is no exception to this rule. The Federal Solar Tax Credit has been in place since 2005. The goal is to incentivize households to transition to solar, but time is running out on this credit. The residential and commercial solar tax credit has seen tremendous success, with thousands of homes switching to greener energy.
Corporations are in the best position to take advantage of these credits. With insurance available for all tax credit purchases, know that your reduced tax liability is protected for the entire term of your credits.
What Makes Our Tax Credits Better?
- All credits are based on “Cost to Construct”. This eliminates the step up in basis risk for our projects.
- Buyers of our credits get full indemnity with a lien on the real estate to secure the credit against recapture.
- Technical Memorandum issued by renewables attorney addressing depreciation and tax credit calculation
- Cost and Credit certifications performed by top 20 CPA firm
- Tax Credit insurance covering 100% of the entire tax credit and basis.
- Third party appraisal completed on each project
Tax Credit Insurance
We are proud to offer continued exceptional service to our customers by providing available tax credit insurance. We understand that investing in solar energy systems can be a significant financial commitment, and that’s why we have partnered with Brown & Brown, a reputable insurance company, to offer this valuable coverage. Through this partnership, Fortified Solar ensures that our customers can take advantage of federal and state tax credits without the worry of potential risks. Brown & Brown’s tax credit insurance protects our customers against unforeseen events that could potentially impact their eligibility for tax credits, providing them with peace of mind and safeguarding their financial investment. At Fortified Solar, we are dedicated to delivering comprehensive solutions that make solar energy more accessible and financially viable for our clients, and our collaboration with Brown & Brown further demonstrates our commitment to excellence in customer service and satisfaction.