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FAQs

Find answers to Frequently Asked Questions

Buyer FAQs

1.What is a tax credit?

A tax credit is a financial tool (measured in dollars) that serves to reduce a business or individual tax liability at the federal, state or local level. eTax Credit Exchange currently facilitates trading of tax credits at the state level.

2.Who can use tax credits?

Any business or individual with a state tax liability is eligible to purchase tax credits.

3.Do I have to be an accredited investor or broker to purchase tax credits?

State tax credits are not a regulated financial product. Anyone with a state tax liability is eligible to purchase tax credits.

4.Can I purchase tax credits on behalf of my clients?

You can purchase tax credits as an “Agent Buyer” with your client’s approval. Please refer to the help text when registering for further explanation.

5.How do I know the tax credits are valid?

eTax Credit Exchange will not permit bidding on any tax credits through the Marketplace unless, at the time of the initial listing, eTax Credit Exchange has confirmed that the tax credits exist or have been approved, certified, or are otherwise available to be transferred pursuant to the laws of the jurisdiction under which the tax credits were created. If eTax Credit Exchange receives written notice that any tax credits are invalid, subject to recapture or forfeiture, exhausted, extinguished, or otherwise unavailable, eTax Credit Exchange will suspend bidding on such tax credits until eTax Credit Exchange has reconfirmed to eTax Credit Exchange’s satisfaction that such Tax Credits have been approved, certified, or are otherwise available to be transferred.

6.Is this an auction?

This is not a timed auction. eTax Credit Exchange is a Marketplace where Buyers can purchase state-certified tax credits at a price listed by the respective Sellers. If the Seller chooses to accept bids (which will be clearly noted on the Marketplace), Buyers can submit bids below the listed price. Sellers have 48 hours to accept or reject any bid. If the bid is rejected, the Buyer can submit additional bids to other projects or a modified bid to the same Seller.

7.What is the minimum amount of tax credits I can purchase?

The minimum amount of tax credits that can be purchased is determined by the Seller and is clearly stated in each Seller’s project listing on the Marketplace.

8.Can I purchase tax credits for previous years?

Many tax credits can be carried forward beyond the year in which they were generated. Information regarding each program’s carry-forward period can be found in the Program Details section of the Marketplace. If tax credits are still within their carry-forward period, they can be utilized on an unfiled year’s tax return.

9.Once I purchase the tax credits when do they belong to me?

Upon confirmation of receipt of funds, eTax Credit Exchange will generate and issue to the Buyer a Transfer Document, a legal document stating the transfer of ownership from the Seller to the Buyer. eTax Credit Exchange simultaneously files the Transfer Document with the appropriate department in each state.

10.Do I have access to my documents after I have purchased tax credits?

All documents for your transactions will be kept in eTax Credit Exchange’s secure database for 10 years and can be accessed online through your account.

Seller FAQs

1.How do I list my tax credits?

If you have been awarded or have purchased tax credits that you would like to sell, register with eTax Credit Exchange as a “Seller” and follow the instructions to upload your state documentation. Tax credits are listed only after e Tax Credit Exchange has confirmed the validity and availability of all tax credits to be transferred, pursuant to the laws of the jurisdiction under which the tax credits were created, by the appropriate state department office.

2.When can I list my tax credits?

Once you have successfully submitted all required documents to the Marketplace, eTax Credit Exchange will confirm the validity and availability of all tax credits to be transferred, pursuant to the laws of the jurisdiction under which the tax credits were created, by the appropriate state department office. Upon receiving confirmation the tax credits are valid, eTax Credit Exchange will notify you and update the project status to “certified”, enabling the project to be listed on the Marketplace.

3.Can eTax Credit Exchange help to get my project certified?

eTax Credit Exchange cannot assist in getting your project certified. However, you can list valid projects for viewing on the Marketplace by uploading the letter from the state verifying the project as “pre-certified”. Once the project has been certified, upload the certification letter from the state and after verificaton, eTax Credit Exchange will update the project status to “certified”, allowing trading activity to commence on the project.

4.Is there a minimum amount of tax credits that I can list?

As a Seller, the minimum amount of credits you can list is $1,000.00.

5.Can I change my listing price?

You can change your listing parameters on your Dashboard at any time. Please be advised that you are bound to any and all bids accepted and transactions fully executed prior to editing your preferences.

6.Is this an auction?

This is not a timed auction. eTax Credit Exchange is a Marketplace where Buyers can purchase state-certified tax credits at a price listed by the respective Sellers. If the Seller chooses to accept bids (which will be clearly noted on the Marketplace), Buyers can submit bids below the listed price. Sellers have 48 hours to accept or reject any bid. If the bid is rejected, the Buyer can submit additional bids to other projects or a modified bid to the same Seller.

7.Can I accept bids?

When listing a project on the Marketplace, you can elect to accept bids outside of a project’s listed price. When a bid is submitted, you have 48 hours to accept (or reject) the bid before it expires.

8.How do I receive my proceeds?

You can choose to receive payments either via ACH (Automated Clearing House) credit to a bank account or wire transfer after a 48-hour escrow period.

9.How are my credits transferred to my Buyers?

eTax Credit Exchange serves as the clearing agent and creates and files all documents required to effect the transfer of credits from the Seller to the Buyer.

10.Do I need to notify the appropriate state department that I sold my credits?

eTax Credit Exchange will notify the appropriate state department on your behalf. eTax Credit exchange serves as the clearing agent and creates and files all documents required to effect the transfer of credits from the Seller to the Buyer.