State Renewable Energy Tax Credits – FAQs

1. What is the federal tax treatment of the state tax credit?
2. What taxes does this credit offset?
3. How do I receive the tax credit (structurally)?
4. What are the risks of the particular tax credit in which I have interest?
5. How much do they cost?
6. What is the minimum number of tax credits that it makes sense to acquire?
7. When do I receive my certificate/k-1?
8. Is the credit certificated by the state?
9. What happens if my K-1 shows fewer credits than expected?
10. Will acquiring state tax credits increase my risk of audit?
11. Is the credit subject to recapture and what is your experience with state tax credit recapture?
12. What are my savings (if we could create a calculator for this that would be great)?
13. Are these credits subject to the passive loss rules of Internal Revenue Section 469?
14. If I acquired more credits than I can use currently, do they carry back or carry forward?
15. What determines the pricing of state tax credits in general?
16. Are references available?
16. Where can I learn more?

For more information, contact George Strobel.


Many states offer film & entertainment tax credits to encourage production, expenditure and job-creation within their states.  See which states offer these tax benefits.


These credits offer the possibility to offset up to 100% of your tax liability.  Also, some states offer abandoned mill tax credits which are similar in nature to historic tax credits.


Utilizing renewable energy tax credits can improve the environment and your tax liability. Learn more about these types of projects.


These credits are awarded to developers of affordable housing projects.  Affordable housing tax credits are dollar–for–dollar credits which act against the individual trust and corporate income tax and, in some states, insurance premium taxes and bank taxes.