Issue
The buyer had a $22 million tax liability, while a tax credit generator had a $22 million Section 45Z tax credit that could not be used.
Solution
After CBIZ brought the right buyer to the table, our tax credits practice helped move the transaction forward by supporting the buyer through due diligence, providing an optional opinion letter and due diligence report, and facilitating the acquisition.
Outcome
The client bought the $22 million credit for $20.13 million and applied it toward its $22 million tax liability, resulting in an immediate $1.87 million in tax savings before transaction fees.
| Company Information | |
|---|---|
| Industry | Financial Services |
| Entity Type | C-Corporaiton |
| Geographic Footprint | National |
| Annual Revenue | $1 billion |
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