R&D Investing and Warrant Exercision

The investment of the monetized tax credit can take this form:

The monetized tax credit can be invested in companies performing third party R&D.

Providing third party services generates an income stream for the investor.

The firm for whom R&D services are performed receives a tax credit of 65% of funds spent on R&D.

The third party service provider receives warrants in lieu of the tax credit.

The warrants may be monetized at a significant multiple of the issue value.

Those shares can be donated to a 501c3 which then conveys that asset to working families.

The tax benefit derived from the donation flows to the tax equity investor.




Leave a Comment

Your email address will not be published. Required fields are marked *