Buying Tax: Credits

Tax credit transfer involves a seller (e.g., a renewable energy developer) who has generated more credits than they can use and a buyer with a large tax bill.

All transfers must be made in cash (checks, wires, etc.) to be valid. These payments are not considered taxable income for the seller and are not deductible for the buyer. Key Market Segments (2026 Context) buying tax credits

Buyers typically pay a discounted rate for credits, such as $0.92 for every $1.00 of credit value. For example, a company might buy $1 million in credits for $920,000, creating an immediate $80,000 tax saving. Tax credit transfer involves a seller (e