Federal Tax Credits Clause Samples
The Federal Tax Credits clause establishes how any federal tax credits related to the subject matter of the agreement are to be handled between the parties. Typically, this clause specifies which party is entitled to claim or benefit from available federal tax credits, such as those for renewable energy projects or research and development activities. By clearly allocating the rights to these credits, the clause helps prevent disputes and ensures that the financial benefits of tax incentives are distributed as intended under the agreement.
Federal Tax Credits. Contractor shall cooperate with Owner to optimize Owner’s ability to claim Investment Tax Credits applicable to the Project, including providing any information necessary for Owner to receive such credits, such as reporting and itemization requirements with respect to qualified property or otherwise.
Federal Tax Credits. Any federal Tax Credits allowable in the computation of Consolidated Federal Tax shall be allocated to those Members whose activities generated the federal Tax Credits utilizing the ordering rules of Code Section 38 or any successor statute. Each Member whose federal Tax Credits were utilized on the Consolidated Federal Return shall receive the amount by which Members with Federal Taxable Income have had their allocable portion of the Consolidated Federal Tax reduced as a result of such federal Tax Credit or, if applicable, the carryover of such federal Tax Credit.
Federal Tax Credits. The City and ▇▇▇ intend to explore claiming federal historic rehabilitation tax credits for the SAAM renovation project. In order for the SAAM renovation project to be eligible for such credits or to maximize the value generated by such credits, it may be appropriate for the City to convey ownership of the SAAM building to a tax credit entity (“Tax Credit Entity”). If the Parties concur that such conveyance is necessary or sufficiently important to warrant conveyance of the SAAM building, then such conveyance will be accomplished by a ground lease from the City to ▇▇▇ and conveyance of the SAAM building from the City to the Tax Credit Entity. Such conveyance will be by quit claim deed, which, in addition to conveying ownership of the building, will restrict its use to museum and related purposes. It is the intent of the parties that upon the expiration of the ground lease ownership of the SAAM building will revert to the City. In the event the Parties conclude sufficient value can be realized from tax credits without conveyance of the building, ▇▇▇ chooses not to pursue tax credits, or ▇▇▇ is unable to secure a commitment from a tax credit investor on reasonably acceptable terms, the City and ▇▇▇ will execute a lease for the SAAM building and land.
Federal Tax Credits. In respect of the Federal Tax Credit: (i) any branch of the Canadian federal government, including the CRA or CAVCO, announces that the Federal Tax Credit (x) is no longer available, (y) is only available at a percentage of labour expenditures less than the current percentage or (z) refuses to issue Borrower any certificate necessary for Borrower to claim the Federal Tax Credit, such as a Part B Certificate; or (ii) Borrower incurs or is otherwise subject to any tax liability that will have the effect of making the actual proceeds of the Federal Tax Credit less than the estimated proceeds of the Federal Tax Credit set out in the Tax Credit Estimate, unless waived by Bank;