Several states provide tax credits for the development of low income housing and historic preservation, among others. These tax credits are a dollar for dollar reduction of a taxpayer’s tax liability and a permanent benefit. To help its clients and friends soften their tax liability, The Whitlock Company keeps a large inventory of tax credits ready to be purchased at a discount.
In Missouri, the tax credits that Whitlock purchases on behalf of its clients and friends are transferable and have either a carryforward or carryback provision depending on the credit. They can be used to reduce income tax, franchise tax and premium tax.
How Can Tax Credits Help You?
The following case study will illustrate the value of tax credits.
Taxpayer JD has a Missouri income tax liability of $10,000. JD buys $10,000 of tax credits from Whitlock to fully offset his liability of $10,000 but at the price of $9,500. JD realizes a net savings of $500 with the help of Whitlock tax credit utilization.
Whitlock’s experience with state tax credits has shown us that the benefits are very compelling. As a result of purchasing tax credits from us at a discount, a company or individual realizes a net savings simply by using the credits to offset a tax liability, whether currently or in the future. If a credit is purchased for the purpose of offsetting a prior tax year liability, we will even file the amended return at no charge.
