Your Year-End Tax Planning Checklist: Don’t Skip This Strategy

December brings the familiar year-end tax planning checklist. But there’s one strategy missing from most checklists: renewable energy tax credits.

Unlike charitable donations that reduce taxable income, tax credits directly reduce your tax liability, dollar-for-dollar, at a discount. And unlike other year-end strategies with hard December 31 deadlines, tax credits offer three timing options.

Your year-end tax planning checklist:

☑ Maximize retirement contributions
☑ Accelerate charitable donations
☑ Review estimated payments
☑ Manage capital gains
☐ Explore renewable energy tax credits ← (Often skipped)

Here’s what to know about incorporating renewable energy tax credits into your year-end plan.

Understanding your three timing windows

From a tax standpoint, there is no difference between purchasing credits in December, January, or before filing your return. The timing choice depends on your accounting preferences and cash flow strategy.

Tax Credit Purchase Timeline

All three options take approximately two weeks to complete from initial contact to closing.

Option 1: Close by December 31

Some companies and individuals prefer to finalize tax credit purchases by year-end for accounting purposes. To complete a transaction by December 31, contact Armagh Capital by close of business Tuesday, December 16.

Option 2: Offset your January 15 payment

This is where tax credits deliver immediate cash flow preservation. Instead of paying your Q4 estimated payment in full, purchase credits at a discount.

Consider a Q4 estimated payment of $250,000 due January 15. Purchase $250,000 in renewable energy tax credits at approximately 90% of face value.

• Your cost: $225,000
• Tax liability covered: $250,000
• Cash preserved: $25,000

This same proportional benefit scales to any tax liability size. Your capital remains available for immediate deployment rather than tied up with the IRS.

To use credits for your January 15 payment, contact Armagh Capital by close of business Monday, January 6, 2026.

Option 3: Purchase anytime before filing

Credits can be purchased all the way until you file your 2025 tax return. This approach works well for buyers who want to see their final tax picture before committing.

Whether you file on April 15, 2026, or request an extension, you can purchase credits right up until filing. Unused credits can also be carried back to generate refunds on prior year overpayments or carried forward for 20 years.

While it is possible to wait, we must stress that the best quality credits will be sold/transferred first.

How do I know these credits are safe to purchase?

2025 renewable energy tax credits remain fully protected under original Inflation Reduction Act provisions. Projects that began construction in 2025 are safe harbored, including solar, battery storage, geothermal, and EV charging. Full transferability is maintained with no new restrictions.

At Armagh Capital, every credit has completed rigorous due diligence and compliance review by consulting firms with cost verification reports before reaching you.

Have further questions on tax credits before considering them in your plan? Email us today.

Calculate your potential cash savings

Tax credits offer three financial benefits:

Direct tax reduction: Purchase credits at approximately 90% of face value and apply the full amount against your tax liability.

Cash preservation: Purchase $1 million in tax credits at 90% for $900,000. Tax liability covered: $1,000,000. Cash preserved: $100,000.

Lower effective tax rate: Tax credits directly reduce your corporation’s effective tax rate.

How credits complement charitable giving

Most year-end checklists focus on charitable giving, and for good reason. It’s a way to make a significant philanthropic impact and receive valuable tax deductions.

Strategic taxpayers diversify their approach. Give generously through charitable donations, and use tax credits for direct federal tax reduction. Tax credits provide a dollar-for-dollar offset of tax liability at a discount. Purchase $100,000 in credits at 90% for $90,000, and you’ve covered $100,000 in tax liability while preserving $10,000 in cash.

Is this strategy right for you?

Renewable energy tax credits are particularly effective for:

• C-corporations making quarterly estimated payments
• High net worth individuals with passive income from rental real estate or royalties
• Family businesses with substantial 2025 tax liability

For individuals and partnerships, these credits typically offset federal income tax from passive income. C-corporations can apply credits against broader tax liabilities.

Add tax credits to your December plan

For December 31 close: Contact Armagh by December 16, 2025
For January 15 payment offset: Contact Armagh by January 6, 2026
For flexible timeline: Contact Armagh anytime before filing

The process:

1. Contact Armagh directly with an estimate of your 2025 tax credit need.
2. We’ll provide you with a selection of our exclusive credit inventory.
3. Select credits by size, price, and technology preference
4. Access comprehensive due diligence folders
5. Review draft agreement
6. Close transaction

Don’t delay. Proactive buyers consistently secure better pricing and credit selection.

Complete your year-end planning

Whether you’re planning to close by December 31, offset your January 15 payment, or purchase before filing your return, Armagh Capital provides vetted inventory and consultative expertise to incorporate tax credits into your strategy.

Every credit has completed comprehensive due diligence, ensuring compliance and project quality. Our approach ensures credits fit your specific tax situation.

Contact Armagh Capital today to explore current inventory and add this overlooked strategy to your year-end plan.