We deliver tax credit opportunities.
Many states offer a variety of credits to offset insurance premium taxes, typically a large burden for many insurers. Monarch Private Capital maintains an inventory of credits and actively participates in credit markets with specific use for insurance premium taxpayers. We provide options that allow insurance companies to purchase short-term tax credits or long-term tax credits that deliver a level stream of reduction. Our firm creates customized credit opportunities from simple one-year credits to ten-year credit strips.
The following are the most common state credits used for premium tax offsets:
- Low income housing
- Renewable energy
- Environmental restoration
- Mill/Industrial rehabilitation
- Film/Entertainment (select states)
- Historic redevelopment
Depending on the type of state credit utilized, premium tax credits can generate a 15% or greater reduction. Yet, bulk purchase of multi-year credits can generate a significantly greater reduction due to deeper discounts.
Companies doing business with premium taxes of approximately $500,000 or more each year can benefit from acquiring premium tax credits. Monarch Private Capital works with insurance clients to customize a program around out-of-pocket costs with a focus on maximizing internal rates of return on credit purchases.
Monarch Private Capital has extensive experience working with developers and syndicators of specific state credits. We evaluate opportunities to find credits from projects that have minimal risk profiles to provide insurance companies with the highest possible risk adjusted rates of return. Our relationships, efficient processes and resources ensure buyers are equipped to make well-informed decisions.