Frequently Asked Questions
1. What is a tax credit?
A tax credit is a financial tool (measured in dollars) that serves to reduce a business or individual tax liability at the federal, state or local level. eTax Credit Exchange currently facilitates trading of tax credits at the state level.
2. Who can use tax credits?
Any business or individual with a state tax liability is eligible to purchase tax credits.
3. Do I have to be an accredited investor or broker to purchase tax Credits?
State tax credits are not a regulated financial product. Anyone with a state tax liability is eligible to purchase tax credits.
4. Can I purchase tax credits on behalf of my clients?
You can purchase tax credits as an “Agent Buyer” with your client’s approval. Please refer to the help text when registering for further explanation. Feel free to call us if you have any questions or need clarification at 888-988 eTAX (3829).
5. How do I know the tax credits are valid?
eTax Credit Exchange will not permit bidding on any tax credits through the Marketplace unless, at the time of the initial listing, eTax Credit Exchange has confirmed that the tax credits exist or have been approved, certified, or are otherwise available to be transferred pursuant to the laws of the jurisdiction under which the tax credits were created. If eTax Credit Exchange receives written notice that any tax credits are invalid, subject to recapture or forfeiture, exhausted, extinguished, or otherwise unavailable, eTax Credit Exchange will suspend bidding on such tax credits until eTax Credit Exchange has reconfirmed to eTax Credit Exchange’s satisfaction that such Tax Credits have been approved, certified, or are otherwise available to be transferred.
6. Is this an auction?
This is not a timed auction. eTax Credit Exchange is a Marketplace where Buyers can purchase state-certified tax credits at a price listed by the respective Sellers. If the Seller chooses to accept bids (which will be clearly noted on the Marketplace), Buyers can submit bids below the listed price. Sellers have 48 hours to accept or reject any bid. If the bid is rejected, the Buyer can submit additional bids to other projects or a modified bid to the same Seller.
7. What is the minimum amount of tax credits I can purchase?
The minimum amount of tax credits that can be purchased is determined by the Seller and is clearly stated in each Seller’s project listing on the Marketplace.
8. Can I purchase tax credits for previous years?
Yes. If there are tax credits available on The Marketplace for the tax period for which you owe taxes, they can be used. For some programs, tax credits can be carried forward anywhere from 5 to 10 years beyond the year in which they were generated. Information regarding each program’s carry-forward period can be found in the Program Details section of the Marketplace. If tax credits are still within their carry-forward period, they can be utilized on an unfiled year’s tax return. You can always call us if you have any questions or need clarification at 888-988 eTAX (3829).
9. Once I purchase the tax credits when do they belong to me?
Upon confirmation of receipt of funds, eTax Credit Exchange will generate and issue to the Buyer a Transfer Document, a legal document stating the transfer of ownership from the Seller to the Buyer. eTax Credit Exchange simultaneously files the Transfer Document with the appropriate department in each state.
10. Do I have access to my documents after I have purchased tax Credits?
All documents for your transactions will be kept in eTax Credit Exchange’s secure database and can be accessed online through your account.