FAQs
The Inflation Reduction Act (IRA) of 2022 allows certain clean energy tax credits to be transferred for cash. Buyers can reduce federal tax liabilities while supporting the finance of clean energy projects for sellers. It’s a win-win for all companies and helps accelerate renewable energy.
Tax credits can only be sold in exchange for cash. Income earned from the sale of the tax credits is not considered gross income for U.S. federal income tax purposes and therefore is not subject to tax. The rules can be found in Section 6418 of the Internal Revenue Code.
Tax credits are an asset that allow the holder to use the credit to reduce the amount of tax that they owe.
For example, if a taxpayer had a tax liability of $10,000 and they had a tax credit of $1,000 they would only have to pay $9,000 in taxes.
Any business that has generated certain tax credits under the IRA 2022 can sell tax credits. A list of these credits can be found here at 6418(f)(1)(A).
Any individual or business with tax liability in the United States.
If you have a tax liability, buying tax credits can reduce your tax liability more than the cost of the tax credit.
Other personally identifiable information (PII): All your PII that is used to create an Atheva account, to make a listing or a bid, is kept on Atheva’s cloud servers. We use a third party cloud provider which has all the industry standard security features (ie. encryption at rest and in transit; CPSM, intrusion detection; IAM).
We have built a number of safeguards to minimize any risk you may have. And we're continuously trying to do more to make transacting on our site as safe and efficient as it can be.All sellers go through a KYC (Know Your Customer) check to verify their identity and check their background.
- All buyers go through a KBA (Knowledge-based Authentication) check to prove their identity
- Sellers are incentivized to share information that will help substantiate their credit
- Every listed credit is backed by an indemnity from the seller for 100% of the purchase price plus costs incurred by the buyer
- Sellers will have the opportunity to increase the level of indemnification above 100% to show how confident they are that the credit is valid
- All buyers give ACH pre-authorization when they make a bid. So once an auction ends, Stripe automatically withdraws money from the winning bidder’s account.
- Both buyer and seller will receive a signed Credit Sale Agreement at the end of completed transaction.
Atheva is working with leaders in the field of commercial payments and legal documentation to ensure that payments are safe and parties have the legal protections they would expect in connection with a tax credit sales transaction. This includes working with Stripe to collect and distribute payments, and DocuSign to execute contracts.
Atheva is also working with legal experts in the field to develop agreements that include provisions that buyers and sellers of tax credits would expect and are carefully monitoring any releases by the Treasury Department (including the IRS) to make sure that Atheva's process will comply with any rules that are issued about the sale of tax credits.
Absolutely. When it comes time to sign something, we’ll ask if you’re the right person in your organization. If you’re not, we’ll ask you to tell us the name and email address of the right person. We’ll get in touch with them and move the process forward. And we'll make sure you're kept in the loop with how things are progressing.
We have a dedicated customer support team that can reply to any queries within 48 hours. Get in touch via Contact Us or email us at contact@atheva.com.
