B10 Energy specializes in providing renewable energy tax credits (RETCs) to help companies minimize their tax liabilities. This case study details how B10’s expertise and unique guarantees enabled a financial services C-Corp with approximately thirty employees to effectively manage and reduce its tax burden.
The client, operating in the financial services sector, faced an expected tax liability of $640,000 for the fiscal year ending in 2024. Referred to B10 Energy by a commercial solar developer partner, the client sought to explore the potential of RETCs to offset their tax liabilities. RETCs, classified as General Business Credits, can offset up to 75% of an annual tax liability, presenting a significant opportunity for tax savings.
The client faced several challenges:
B10 Energy conducted an extensive benefit analysis, which included:
Based on their analysis, the client had the potential to offset a total tax liability of $2,000,000 using RETCs for 2024 and the prior three years combined. Despite liquidity constraints, the client decided to purchase 480,000 tax credits in Q1 of 2024, when credits were priced at $0.80 per credit. This purchase allowed for a $384,000 investment, providing a significant tax offset.
The strategic purchase and application of RETCs resulted in substantial financial benefits for the client:
By investing $384,000 in tax credits, the client achieved a net benefit of $96,000, equating to a 25% return on investment over twelve months. The client also began setting aside additional capital for future credit purchases to further maximize their tax-saving potential.
B10 Energy’s commitment to minimizing risks played a crucial role in the client’s decision to work with them. Their unique guarantees include:
As the provider, not a broker, B10 Energy offers these guarantees to provide clients with confidence and security in their tax credit investments.
This case study demonstrates B10 Energy's ability to leverage Renewable Energy Tax Credits to deliver significant tax savings for their clients. Through detailed analysis, strategic planning, and risk minimization, they enabled the client to effectively reduce their tax liabilities, resulting in substantial financial benefits. B10 Energy remains dedicated to helping companies navigate the complexities of tax credits to achieve optimal financial outcomes.