RCM
Client Success Story

Eliminating a $250 Million Estimated Tax Payment Through Intent-to-Purchase Transferable Credits

  • The Problem

    In late 2024, a Fortune-500 client faced a $250 million estimated tax (ES) payment due in just two weeks—a major and unexpected cash outlay. RCM quickly identified an opportunity to eliminate the ES payment entirely through the acquisition of transferable federal tax credits.

    However, the client could not complete a full credit purchase on such an accelerated timeline. Most firms would have stopped there. RCM didn’t.

    Leveraging our deep expertise in the Inflation Reduction Act and corporate tax administration, RCM identified favorable IRS guidance permitting corporate taxpayers to reduce estimated tax payments based on documented “intent to purchase” transferable tax credits. This guidance exists to ensure that taxpayers have liquid capital available to purchase tax credits—rather than being forced to both make a large ES payment and separately fund a credit acquisition.

  • Turning visitors into leads.

RCM Action & Outcome

What began as an urgent cash-flow crisis became a highly optimized tax and treasury outcome, delivered through RCM’s expertise, speed, and command of IRS administrative guidance.

Prepared a tax memorandum documenting the client’s binding intent to purchase transferable tax credits, meeting IRS requirements.

Enabled the client to immediately reduce their ES payment to zero, avoiding the entire $250 million outlay.

RCM then led the full diligence, valuation, structuring, and negotiation of the credit acquisition.

The client secured the credits at a market discount, and, critically, did not need to fund the purchase until January 2026.

Creating a Dual Financial Benefit

Credit discount savings on the purchase; and a 6+ month return on the preserved $200 million of cash, generating a significant time-value-of-money gain.

Connect with RCM

 

Get in touch to learn how we can help you take full advantage of transferable energy tax credits. Our team is here to guide you through every step with clarity, confidence, and compliance.