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S T A T E & L O C A L T A X S T R A T E G I E S
As many as 25 states offer transferable state tax credits for investment in various types of activities, including film production, rehabilitation projects, and renewable energy projects. Taking advantage of this opportunity could help you either reduce your state tax burden (by purchasing credits) or increase your cash flow (by selling credits you’ve earned). How does it work?
Companies that generate certain state-
certified credits may assign or transfer
their eligibility to qualified buyers.
Depending on the state, the type of credit,
and the types of taxes that may be offset,
the prices can range from $0.67 to $0.95
per dollar of credit purchased. The types
of taxes the credits may offset, depending
on the state, include personal income tax,
corporate income tax, financial institution
tax, franchise tax, insurance companies’
premiums tax, and sales and use tax.
We Can HelpIf you’re interested in leveraging this
opportunity, Moss Adams LLP can help
you certify and transfer earned credits,
identify available credits, and navigate the
transfer process. We’ve helped our clients
transfer more than $500 million in credits,
and we’ve performed incentive compliance
and audit services for eligible projects in
excess of $3 billion of total project costs.
We represent a number of companies
that have inventory or earn credits in the
following states:
Transferable State Tax Credit Services
LLP_0372_1304
State Credit Taxes Offset*
Alaska Film production credit • Corporate income • Insurance premiums• Title insurance premiums• Oil and gas production • Oil, gas, and pipeline property • Mining license • Fisheries business
Connecticut Film production credit • Insurance premiums• Corporate income
Georgia Film production credit • Personal and corporate income
Illinois Hospital credit, film production credit
• Personal and corporate income
Iowa Wind energy production credit
• Personal and corporate income• Franchise• Sales and use
Louisiana Motion picture investor credit, historic rehabilitation credit
• Personal, corporate, and franchise
Massachusetts Brownfields credit, historic rehabilitation credit, film production credit
• Corporate excise • Insurance premiums excise
Michigan Brownfields credit • Michigan business
New Jersey R&D credit, net operating losses
• Corporate
New Mexico Sustainable buildings credit
• Personal and corporate income
Oklahoma Renewable energy and coal production credit
• Personal and corporate • Insurance premiums• Rural electric cooperative
Oregon Business energy credit, biomass credit, farmworker housing credit, film production credit
• Personal and corporate income
Pennslyvania Film production credit • Personal and corporate income • Franchise • Insurance premiums• Bank shares
* The types of taxes that may be offset depend on the type of credit. Limitations may apply to the amount of tax that may be offset by the use of a specific credit.
M O S S A D A M S S T A T E & L O C A L T A X S T R A T E G I E S
Beyond the potential to deliver a high rate of return,
transferable tax credits can also help you:
• Reduce your total state income tax liability
• Lower your effective state tax rate
• Diversify your investment portfolio
• Promote the use of renewable energy, environmental programs, or other incentivized industries you may support
In general, the credits are irrevocable once purchased. In
addition, some of the credits may be carried back and taken
on an amended return. The carryforward period varies but
can be up to 10 years.
Contact UsMoss Adams has the expertise to help you turn state and
local taxes into an opportunity for real savings. To discover
how we can help you benefit from this and other tax
incentives, contact:
Robert A. O’Neill, Partner
(503) 478-2339
Irina Antonache, Manager
(503) 478-2138
