We deliver tax mitigation opportunities.
Tax credits are governmental incentives aimed at fostering specific business activities by mitigating tax liabilities for individuals or businesses. Precisely, they are incentives offered by federal and state governments to foster growth in an industry or serve as a stimulus to promote a particular social or environmental purpose.
Tax credits represent a dollar for dollar reduction in the credit owner’s income tax liability. A variety of dollar for dollar tax credit programs exist including low income housing, film/entertainment, renewable energy, research and development, jobs training, historic and federal. Many of these credits can be sold by the generator of the credit to other taxpayers.
The parameters of each tax credit determine how a taxpayer benefits. As a trusted partner, we work with corporate tax departments, wealth managers, CPAs, tax and estate planning attorneys, and other financial planning advisors to craft a customized tax credit strategy tailored to align with current and future financial objectives.
Any individual or business with tax liabilities is a candidate for tax credits. Corporations, insurance companies or individuals that pay $50,000 or more in state tax are well-positioned to reap the benefits of state tax credits. Primary candidates include companies or individuals with the following characteristics:
- Annual salary of $500,000 or more
- Significant dividend income
- Payers of state premium taxes
- Recipients of a liquidity event (i.e. sale of a company or assets, etc.)
- Corporate taxable incomes of $250,000 or more
- Corporations with annual tax liabilities of $500,000 or more can benefit from federal tax credit opportunities.
Monarch Private Capital has an inventory of credits and works with a variety of companies that supply credits. The taxpayer can invest in a credit at a discount to offset their tax liability generating cash savings. We will guide the purchasing taxpayer through the process.