Re-orienting tax liabilities into high-yield working capital. Mid-market C-Corps and qualifying Family Offices capture up to 23.5% direct return (29.7% Tax-Equivalent Yield) on quarterly tax allocations.
IRC §6418(b) Status
100% Tax-Exempt
Discount excluded from gross income
Purchase Pricing
81¢ – 96¢
Per $1.00 IRS tax liability
Max Direct Return
23.5% Cash
Direct yield on Band D cash paid
Max Tax-Equiv Yield
29.7% TEY
Grossed up at 21% C-Corp rate
Select entity tax classification, quarterly liability, and credit risk band to model precise net cash retention and tax-equivalent yield.
C-Corp Rules: §6418 discounts directly reduce corporate income tax liabilities under Form 1120-W without passive limitation barriers.
Operational Production Tax Credits. Ultra-low risk, Tier-1 developer wrap.
Standalone Battery Energy Storage Systems with A-rated insurance.
Commercial & Industrial Battery Storage + Biogas with Cost Segregation.
Advanced clean technology credits offering maximum purchasing yield.
Quarterly Cash Saved
$17,500
Annualized Savings
$70,000
Under IRC §6418(b), the purchase discount is completely excluded from federal gross income.
No up-front commitment. Includes full Substantiation Package & Insurance Binder preview.
How SecuredCarbon seamlessly converts standard tax liabilities into net working capital under IRC §6418.
| Treasury Metric | Standard IRS Cash Payment | SecuredCarbon Credit Program |
|---|---|---|
| Quarterly Tax Liability | $1,000,000 liability satisfied | $1,000,000 liability satisfied |
| Direct Cash Outlay | $1,000,000 paid directly to Treasury | $880,000 cash for credits ($0.88/$1.00) |
| Quarterly Retained Savings | $0 | $120,000 net cash retained |
| Tax on Discount / Gain | N/A | $0 (100% Tax-Exempt under §6418) |
| Quarterly Estimated Offset | Requires full 100% cash transfer | Applied directly to Form 1120-W / 1040-ES |
Cash-for-credit swaps deliver an immediate return on cash allocated toward quarterly tax obligations (Form 1120-W or Form 1040-ES).
Under IRC §6418(b), the discount realized on credit purchases is excluded from federal gross income—making an 11% discount equivalent to a ~14%+ taxable yield.
IRS guidelines allow corporate buyers to factor anticipated credit transfers directly into their quarterly estimated tax calculations, keeping cash in corporate accounts longer.
Re-framing the conversation from specialized energy engineering to standard liquidity management with complete IRC §469 compliance.
Framed as a routine cash-management tool rather than an “energy deal,” de-risking the conversation and giving finance leaders an easy win on working capital.
Targeting investors with heavy real estate or private equity LP distributions, positioning §6418 credits as a direct mechanism to offset IRC §469 passive activity tax liabilities.
Regulatory Notice on Individual Taxpayer Eligibility (IRC §469 Rules):
Under Treasury Regulations governing IRC §6418 credit transfers, tax credits purchased by individuals, trusts, or pass-through LP investors are categorized as Passive Activity Credits. Consequently, these credits can generally only be utilized to offset federal tax liabilities derived from passive income sources (such as real estate rentals or non-materially participating LP businesses). Unused credits are suspended and carried forward. SecuredCarbon provides pre-screening tools to match family office credit allocations directly against documented passive tax liabilities.
We eliminate the need to hire specialized tax attorneys or technical engineering teams.
Eliminate the need for buyer-side due diligence by presenting a turnkey “Substantiation Package” backed by:
We streamline transactional friction into a standard 2-step financial transfer:
Illustrative modelling only. Figures on this page are illustrative and do not constitute an offer, solicitation, or tax advice. Credit pricing and availability vary by transaction and are not guaranteed; calculator results assume the most favourable price in each band. Transferred credits are subject to recapture, passive activity, and at-risk limitations that depend on the buyer’s own facts. Prospective buyers should consult their own tax counsel before relying on any figure shown here.