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Tax Credits
Atoka is a market maker in Virginia's largest tax credit - the Land Preservation Tax Credit.
Throughout the year, we organize a market exchange of seller tax credits to be transferred to Virginia taxpayers looking to support the Commonwealth’s Land Preservation program as well as reduce their Virginia tax liability.
Atoka represents high quality tax credits that are competitively priced. Easements are individual and unique as property and so are the credits created by each easement. Since all credits are not the same, we extensively review the underlying easement documentation and appraisal and customarily visit the easement site to make ourselves comfortable with the subsequent tax credits. Buyers should note that low priced credits may carry additional undesired market risk.
Credits are purchased directly from the landowner/seller at discounts ranging from 15-25% of face value of the credit. This constitutes the reduction in the purchasers’ tax liability when they file their credits with their tax returns. Purchasers should consult with their financial and tax advisors to determine the amount of their current year state tax liability. Unused credits, however, may be carried forward for up to 12 years after the year of the initial easement donation.
All of our credits are backed with the seller's indemnification of the purchaser.
Request a Tax Credit Purchase Form
Example
- A Virginia taxpayer purchases $50,000 of tax credits for a reduced price of $41,000 to pay $50,000 of Virginia income tax. This transaction nets the taxpayer a $9,000 savings.
- For 2011, each purchaser can use up to $50,000 of tax credit each year to offset Virginia income tax liability. Married couples filing jointly may use up to $100,000 of credit for the year.
Disclaimer: This information is for informational and educational purposes only. Atoka does not provide legal or tax advice and nothing herein should be considered professional advice. Additionally, Atoka does not provide a guarantee or warranty to either credit sellers or buyers. Credit sellers and their advisors are responsible for ensuring that the sellers’ credits meet all federal and state law requirements.
