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Archive for Michael Korengold

Insured Tax Credit Investments Are The Smartest Corporate Tax Strategy

Michael Korengold

Corporate Tax Directors are in a unique position to add immense value by exploring ways to lower their corporation’s effective tax rate.  Tax Directors must walk a fine line of getting this important mission accomplished or being too creative in taking unnecessary risks.

Insured Tax Credit Investments provide a practical option to lower a corporation’s effective tax rate with the downside covered by insurance.

How do Tax Credits work?

  • Tax credit programs are government sponsored initiatives designed to encourage taxpayers to help finance solar projects, historic building redevelopment and affordable housing
  • Corporate taxpayer repurposes tax payment reserves into qualifying tax credit projects
  • Taxpayer receives tax credits, project cash flows and an exit payment
  • Tax credit investors generate a return on their tax payments, thus boosting their after-tax income and lowering their effective tax rate
  • Returns are predominantly uncorrelated with project performance – taxpayers earn the tax credits as long as the project maintains regulatory compliance.
  • An insurance policy eliminates the compliance risk and, as such, allows a taxpayer to generate a yield on their tax payments without the risk of losing the tax credits 

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How Does The Solar Tax Credit Program Work?

Michael Korengold

The Solar Tax Credit program, like other federally-sponsored tax credit programs, is a government sponsored initiative designed to encourage taxpayers to help finance solar projects.

Tax credits provide a dollar-for-dollar reduction of a taxpayer’s income tax liability by repurposing tax payment reserves into qualifying tax credit projects.

By  investing in a qualified project, the tax credit investor receives tax credits, project cash flows and an exit payment.

Tax credit investors take primarily program compliance risk (as opposed to underlying performance risk) and generate a return on the funds they otherwise would have used to satisfy their tax liabilities.

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How Does The Solar Tax Credit Program Work?

Michael Korengold Solar Tax Credit Program

How Does The Solar Tax Credit Program Work?

  • The Solar Tax Credit program, like other federally-sponsored tax credit programs, is a government sponsored initiative designed to encourage taxpayers to help finance solar projects.
  • Tax credits provide a dollar-for-dollar reduction of a taxpayer’s income tax liability by repurposing tax payment reserves into qualifying tax credit projects.
  • By  investing in a qualified project, the tax credit investor receives tax credits, project cash flows and an exit payment
  • Tax credit investors take primarily program compliance risk (as opposed to underlying performance risk) and generate a return on the funds they otherwise would have used to satisfy their tax liabilities.

Read more

Lowering A Corporation’s Effective Tax Rate With Tax Credits

Michael Korengold GOLD

Corporate Tax Directors are in a unique position to add immense value by exploring ways to lower their corporation’s effective tax rate.  Tax Directors must walk a fine line of getting this important mission accomplished or being too creative in taking unnecessary risks.

Insured Tax Credit Investments provide a practical option to lower a corporation’s effective tax rate with the downside covered by insurance.

How do Tax Credits work?

  • Tax credit programs are government sponsored initiatives designed to encourage taxpayers to help finance solar projects, historic building redevelopment and affordable housing
  • Corporate taxpayer repurposes tax payment reserves into qualifying tax credit projects
  • Taxpayer receives tax credits, project cash flows and an exit payment
  • Tax credit investors generate a return on their tax payments, thus boosting their after-tax income and lowering their effective tax rate
  • Returns are predominantly uncorrelated with project performance – taxpayers earn the tax credits as long as the project maintains regulatory compliance.
  • An insurance policy eliminates the compliance risk and, as such, allows a taxpayer to generate a yield on their tax payments without the risk of losing the tax credits 

Read more