According to a recent LinkedIn post from Concentro, the firm is highlighting tax-planning opportunities associated with purchasing transferable tax credits under §39(a)(4). The post notes that such credits can generally be carried back three years and forward 22 years, a longer window than the “1 and 20” rule typically applied to general business credits.
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The post explains that a credit purchased in 2025 could be applied to the current year and three prior years, subject to the 75% General Business Credit limitation in each year. Application is described as sequential and mandatory across years, which may constrain buyers that prefer selective timing of credit usage.
Concentro’s post outlines two frequent use cases: corporations seeking to retroactively address a large one-time tax event in a recent year, and smaller buyers aggregating multiple years of tax liability into a single, potentially more efficient credit purchase. The post also notes that carry-backs are typically executed via amended returns or tentative refund claims on Form 1045, with refunds often taking several months.
For investors, the focus on mechanics and timing of transferable renewable energy tax credits suggests ongoing demand from both new and repeat credit buyers. This may indicate a growing market for structured tax-credit transactions, which could support revenue opportunities for intermediaries such as Concentro, while also signaling continued investor interest in renewable energy–linked tax incentives.