B10 Energy is a leading provider of renewable energy tax credits (RETCs) dedicated to helping companies significantly reduce their tax liabilities. This case study highlights how their expertise in RETCs enabled a consumer products C-Corp with around ten employees to effectively manage and minimize their tax burden for the year ending May 2024.
The client, a consumer products company, had a significant tax liability of approximately $1,000,000 for the fiscal year ending in May 2024. Referred by their tax attorney, the client sought B10 Energy's assistance in February 2024 to explore the potential benefits of RETCs. Given the nature of General Business Credits, RETCs can offset up to 75% of an annual tax liability, presenting a substantial opportunity for tax savings.
Despite recognizing the benefits of RETCs, the client faced several challenges:
B10 Energy conducted a thorough benefit analysis, which included:
Based on their analysis, the client had the potential to offset a total tax liability of $3,000,000 using RETCs for 2024 and the prior three years combined. Despite liquidity constraints, the client decided to purchase 675,000 tax credits in Q1 of 2024 when credits were priced at $0.80 per credit. This purchase allowed for a $540,000 investment, providing a substantial tax offset.
The strategic purchase and application of RETCs resulted in significant financial benefits for the client:
By investing $540,000 in tax credits, the client achieved a net benefit of $135,000, equating to a 25% return on investment over twelve months. Additionally, the client began setting aside additional capital for future credit purchases to further maximize their tax-saving potential.
This case study demonstrates B10 Energy's expertise in leveraging Renewable Energy Tax Credits to provide substantial tax savings for their clients. Through careful analysis and strategic planning, they enabled the client to effectively reduce their tax liabilities, resulting in significant financial benefits. B10 Energy remains committed to helping companies navigate the complexities of tax credits to achieve optimal financial outcomes.