How High-Net-Worth Individuals Can Reduce Their Tax Liabilities with Tax Credits

Are you a high-net-worth individual looking to reduce your federal taxes? The Inflation Reduction Act (IRA) of 2022 has introduced opportunities for individuals with passive income to buy clean energy tax credits to help reduce their tax liabilities. By leveraging these tax credits, you can not only reduce your taxes, but also generate economic returns and help accelerate climate projects. Now is the time to incorporate tax credits into your financial strategy. 

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Atheva provides a streamlined process to facilitate buying tax credit. First, you’ll work with our team of experts to understand your financial goals, both long-term and short-term. From there, our team puts together a curated list of credit matches based on your specific needs. Once matched with a credit, Atheva provides clear steps and outlines specific needs from you to the seller to help fast track the transaction. From standardized contracts to credit validation, Atheva provides the tools you need to seamlessly buy transferable tax credits. 

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Atheva offers high-net-worth individuals (and advisors representing them) an easy way to buy credits to quickly impact their ongoing tax liabilities. Through our guided approach, we help educate you on risk mitigation and the overall process. This way you can have confidence in every transaction, avoiding potential risks and maximizing your financial benefits.

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Tax credits can provide both monetary and personal value for HNW individuals. First, from a monetization standpoint, utilizing tax credits will help reduce tax liabilities on a continuous basis. Second, on a more personal note, this allows HNW individuals to participate in the acceleration of clean energy projects. Rather than taking on ownership or equity, this allows them to put their money to good use and easily support U.S. clean energy project development. 

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3 Things High-Net-Worth Individuals Should Know About Tax Credits:

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• Tax Liability Reduction: Tax credits serve as valuable assets that enable holders to decrease their tax liabilities. A credit is purchased at a discount, but the buyer is able to reduce their taxes based on the full value. On average, tax credits are purchased at a 5%-16% discount, allowing HNW individuals to potentially save millions while supporting clean energy initiatives. For instance, a $50M credit may be sold for $45M, but the buyer can reduce their tax liability by $50M.

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• Efficient Process: Atheva streamlines the buying and selling transaction process making it easy for both sides. First, our team collaborates closely with clients to list credits and find suitable matches, ensuring confidentiality with signed NDAs. Then, we facilitate document sharing and guide clients through our analysis in dedicated deal rooms. Finally, we oversee the exchange of credits and payments, ensuring a smooth and secure process from start to finish. 

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• Regulations: Atheva's legal experts assist in developing agreements that meet the expectations of both buyers and sellers while adhering to regulatory standards, ensuring a seamless and compliant transaction process. Additionally, Atheva closely monitors releases by the IRS and Treasury Department to ensure compliance with evolving rules regarding tax credit sales.

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Conclusion

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As a high-net-worth individual, now is the opportune moment to start leveraging tax credits to reduce tax liabilities and contribute to clean energy initiatives. With Atheva, navigating this new market is easy. Our team offers guidance and support to help you optimize tax credits seamlessly, ensuring that you net out with the best outcome. 

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Take the first step towards maximizing your tax benefits and making a positive impact on the environment.

Contact us today to get yourself started on this journey.

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