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.