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Tax Credit Transfer Agreement Checklist for CPAs
Published October 28, 2026. A discussion aid for tax professionals reviewing a §6418 transfer agreement alongside counsel. It is not legal advice or a form agreement.
| Area | What to check |
|---|---|
| Parties | Seller is an eligible taxpayer; buyer is unrelated (§267(b) and §707(b)(1) tests); legal names and taxpayer IDs match the returns. |
| Credit property | Description, placed-in-service date, credit type and amount, separate election per credit property, and the registration number (Treas. Reg. §1.6418-4). |
| Credit year and portion | The seller's credit year and the specified credit portion; confirm the buyer's year under §6418(d). |
| Price and payment | Cash only (§6418(b)(1)); payment inside the window in Treas. Reg. §1.6418-1(f); no bundled consideration that could trigger the anti-abuse rule in §1.6418-2(e)(4). |
| Seller filing | Seller's expected filing date, since the earlier filing closes the payment window and transfer statement completion. |
| Representations | Credit validly determined; prevailing wage and apprenticeship, domestic content or energy community claims as applicable; no prior transfer (§6418(e)(2)). |
| Recapture and reduction | Who bears excessive credit transfer and recapture risk; remedies; insurance or escrow (see recapture and insurance). |
| Documentation | Third-party evidence of the credit property; labeled Transfer Election Statement signed by the seller under penalties of perjury, with the buyer's consent (Treas. Reg. §1.6418-2(b)(5)). |
| Indemnity | Scope, caps, survival period and procedures for audit and notice. |
| Filings | Form 3800 and the election statement for both parties; calendar the due dates. |
For deeper treatment see the due diligence guide and the Form 3800 and Transfer Election Statement guide.
Frequently asked questions
Who signs the Transfer Election Statement?
An individual with authority to bind the seller signs under penalties of perjury, and the statement includes the written consent of an individual with authority to bind the buyer (Treas. Reg. §1.6418-2(b)(5)).
Can the price be paid in kind?
No. Consideration must be cash as defined in Treas. Reg. §1.6418-1(f).
Can a credit be resold?
No. A transferee cannot make an election with respect to a credit previously transferred to it (§6418(e)(2)).
Who reviews the contract?
The client's counsel. CPAs typically focus on tax, timing and reporting.
- 26 U.S.C. §6418, Transfer of certain credits (Cornell LII)
- 26 CFR §1.6418-1, Definitions (paid in cash)
- 26 CFR §1.6418-2, Rules for making transfer elections
- 26 CFR §1.6418-4, Special rules (registration)
- 26 CFR §1.6418-5, Rules for transferee taxpayers and recapture
- IRS: Instructions for Form 3800, General Business Credit
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