Issue
After investing $3 million in a solar project to power its buildings, this not-for-profit sought to claim a Section 48E tax credit to offset the cost of the project.
Solution
CBIZ’s tax credits professionals conducted a tax credit study that included a memo applying the Section 48E rules to the client’s facts and referencing documentary evidence supporting qualification for the credit. The study also included an accurate credit calculation reconciled to detailed underlying substantiation. The client received a fully organized electronic file of supporting documents and assistance with the IRS registration required to receive the direct payment. Our Tax practice also prepares the Form 990-T filed with the IRS to claim the credit.
Outcome
The client received a $1.2 million direct payment from the IRS for the Section 48E tax credit, helping offset the cost of its $3 million solar project. CBIZ provided the client with a defensible package to support the credit claimed if audited by the IRS.
| Company Information | |
|---|---|
| Industry | Not-for-Profit |
| Entity Type | Religious 501(c)(3) |
| Geographic Footprint | Midwest |
| Annual Revenue | $2 Million |
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