Tax credits are federal and state authorized incentives to implement public policy and provide both social and industrial stimulus. In an effort to encourage the private sector to provide a public benefit, government has implemented tax laws that provide a dollar for dollar reduction of corporate tax liability for investments in projects that might not occur if tax credits were not available.
While there are numerous tax credit programs, all are designed to promote social and economic benefit within their respective industries. BCP focuses on those tax credit programs that generate the most substantial benefits. Our tax professionals work directly with our clients to implement the most profitable tax credit transaction available. And, Backroads Capital Partners has vast experience structuring these investments with funding through tax dollars instead of corporate cash.
The Benefits of Tax Credit Transactions
Reduced Taxes
Tax credits are a dollar for dollar reduction of corporate tax liability. They create a permanent economic benefit.Increased Cashflow
Tax credits and the related benefits increase corporate cash flow and positively impact earnings per share.Improved Shareholder Value
As taxes are reduced and earnings are increased the organization’s shareholder value dramatically improves.Community Outreach
Corporations are proud of the community and social benefit they provide through the development of affordable housing, the rehabilitation of historic buildings, or the development of alternative energy sourcesPublic Relations
The public and community relations benefits of tax advantaged investment strategies provides significant additional benefit.