Reduce State Tax Liability

Corporate Taxpayers in targeted states can reduce state tax liabilities by purchasing qualified tax credits at a discount!

If your corporation has substantial tax liabilities in Arizona, California, Connecticut, Georgia, Illinois, Louisiana, Massachusetts, Michigan, Missouri, New Jersey  or Pennsylvania, you may be eligible take advantage of opportunities to purchase credits or NOLs.  These opportunities are NOT untested tax shelters or tax avoidance strategies.  Rather they are “coupon” credits or pre-audited credits approved for sale by the state Revenue or Taxation authorities, and are 100% safe and guaranteed.   The range of savings for the buyer is usually 8 to 12 percent of amount purchased, depending on the state and credit, generating $1 in credits for every $.88 to $.92 paid.

Typically the credits are offered for sale by companies in targeted industries that could elect to have their business in any number of states or locales and whose presence has positive economic impact on the community.   In addition, they have business models where the start-up or long term costs generate losses that eliminate the benefit of credits.  In many cases the ability to sell credits for cash becomes a significant inducement for temporary projects like making films; in other cases it creates improved cash flow for small but heavy research and development-oriented companies like small biotech firms.  In all cases, in addition to being in a designated industry, the sellers must meet specific size, revenue, bookkeeping and recordkeeping requirements to ensure the credibility of the program.  Lastly, the state-authorized benefits are competitive to the extent that a specific dollar amount is set aside for each year or time frame, and once that number is reached the program closes for that period.

Our Tax Benefit Exchange practice enables companies to purchase credits that are part of our inventory or network.  The practice is led by Paul Westbrook, who has been helping sellers get approved and matching up buyers and sellers for ten years.  To learn more about Paul’s credentials, click here.

If you would like to learn more about purchasing tax benefits, contact Paul by Phone at (732) 698-7225 or by email at Paul.westbrook@ntlci.com