Purchasing a tax credit through the tax credit exchange
HOW TO PURCHASE A TAX CREDIT
1. Who Can Purchase a Tax Credit?
Individuals and Businesses with Colorado State Income Tax liability may purchase tax credits. There is no limit to the amount of tax credits that any individual or business may purchase.
2. Why Purchase Tax Credits?
By purchasing tax credits, an individual or business can save money on their Colorado State Income Taxes. Purchasers typically receive a 12% discount on the face value of the tax credits and CRC requires a minimum purchase of $20,000.
Example: A Colorado taxpayer with a $500,000 state income tax liability may purchase $500,000 in credits for $440,000, thus saving $60,000 in state income tax (a 12% savings).
3. The Transfer Process.
Taxpayers who wish to purchase tax credits through CRC first need to submit their statement of intent to purchase credits. This does not commit the taxpayer to purchasing a specific amount of credits – an amount that may not be known to the taxpayer yet.
Once the purchaser tells us how many credits he or she wishes to purchase, CRC will match that amount with a tax credit seller(s) also registered with our program. Once a match has been made, CRC will generate the transfer documents and payment instructions and collect signatures from all the parties.
The Conservation Resource Center often works with tax advisors and attorneys on behalf of their clients. If you prefer, you may have your tax professional or attorney contact us directly.
In some years, demand for credits has outpaced the supply and purchasers who registered late with our program were unable to purchase credits fromus – or any other facilitator. Please register early to maximize your opportunity to purchase credits.
CLICK HERE TO REGISTER ONLINE OR TO DOWNLOAD OUR REGISTRATION FORMS
For information on earning and selling a tax credit, click here.