Transferable Tax Credit Pricing: How the Discount Works

Credits trade at a discount to face value. Here is how to read a quote, what moves it and how to compute what a purchase saves. Prices change with the market; the figures below are published commentary, not an offer.

How a price is quoted

A price of 92 cents means you pay $0.92 for $1.00 of credit. Buying $1,000,000 of credit costs $920,000, and if you can use the credit, your federal tax falls by $1,000,000, a difference of $80,000, or 8.7% on the cash you paid. The price is not deductible, and the discount is not gross income to the buyer (§6418(b); §1.6418-2(f)(2)).

What market participants reported

Concentro's 2026 buyer guide describes buyers typically acquiring credits at about 88 to 95 cents on the dollar, and Aprio describes a wider range of roughly 80 to 95 cents depending on technology, documentation, risk protections and timing. These are third-party observations, not Veritas quotes.

What moves the price

• Credit type. Production credits are reported to price above investment credits that carry recapture (per Concentro).
• Seller strength and indemnity support.
• Insurance. Policies cost money and reduce risk.
• Payment timing. Delayed funding often costs the buyer more per dollar; faster execution tightens the spread.
• Deal size and compliance risk (foreign entity, prevailing wage, domestic content).

Measures to compare

Measure	At 92 cents
Discount	8%
Savings per dollar of cash paid	$1.00 ÷ $0.92 − 1 = 8.7%
Annualized	Depends on how soon the tax benefit arrives after cash is paid

Because the benefit can arrive within days of an estimated tax payment, annualized figures can look very large. They are a function of timing and not comparable to long-term investments, and the ceiling is §38(c).

Net of what?

Subtract broker fees, diligence costs, insurance and the cost of your cash. For individuals, only credit that is allowed counts (§469).

What a price means for $1,000,000 of credit

Price	Cash paid	Tax saved if fully used	Difference	Per dollar of cash
88¢	$880,000	$1,000,000	$120,000	13.6%
90¢	$900,000	$1,000,000	$100,000	11.1%
92¢	$920,000	$1,000,000	$80,000	8.7%
94¢	$940,000	$1,000,000	$60,000	6.4%
96¢	$960,000	$1,000,000	$40,000	4.2%

These are arithmetic illustrations, not market quotes, and assume the credit is fully allowed and used.

Nothing here is a quote or an assured outcome. Market ranges are third-party and may be out of date.