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Wow, how is it even possible to "sell" tax credits? Surely any credits are tied to the EIN/TIN of whatever organization "earned" them: "Most studios owe lit
by lsllc 3y ago
Wow, how is it even possible to "sell" tax credits? Surely any credits are tied to the EIN/TIN of whatever organization "earned" them:
"Most studios owe little in state taxes, so they opt to sell the credits through private brokers at a discount of about 10%, on average.
Let’s say, for example, $50 million in qualified expenses is returned to the studio as a credit for $15 million, which is then sold for $13.5 million—a substantial reimbursement for the movie studio"
- erellsworth 3y agoApparently, it's a whole thing: https://www.mossadams.com/services/accounting/tax/credits-and-incentives/transferable-tax-credits https://www.mossadams.com/services/accounting/tax/credits-an...
- Obscurity4340 3y agoShould it be a whole thing?
- erellsworth 3y agoProbably not.
- downrightmike 3y agoAbsolutely not.
- brudgers 3y agoVia the Low-Income Housing Tax Credit program, sale of tax credits is how the US has funded below market rate housing at the Federal level since the tax reform of 1986. https://www.huduser.gov/portal/datasets/lihtc.html https://www.huduser.gov/portal/datasets/lihtc.html Reductions in corporate tax rates at the Federal level have the effect of shrinking the pool of money for development of housing at below market rates because they make demand for tax credits fall. But of course, reducing the supply of below market rate housing is a feature not a bug for people who seek market rate rents on housing assets.