Buyer Landing  /  The Buying Process

How Buying Tax Credits Actually Works on DealStar

A step-by-step guide to purchasing renewable energy tax credits -- from browsing available inventory through escrow-protected funding to IRS filing. No surprises, no hidden steps.

1

Browse Available Credits

Day 1

Log in and browse the live marketplace. Every listed credit shows its type (ITC, PTC, 45X, 48E), project details, credit amount, asking price, and verification status. Filter by credit size, project technology, pricing range, or geography.

  • Real-time inventory updated as new credits are listed and verified
  • Saved searches notify you when matching credits appear
  • Pricing shown as cost per dollar of credit ($0.85-$0.92 at current rates)
  • Each listing includes a verification status badge showing how far through DealStar's 5-point check the credit has progressed
2

Review the Diligence Report

Days 2-5

Every credit on DealStar includes a detailed diligence report generated by our AI-powered verification engine. This is not a summary -- it is the complete project review your tax and legal teams need to approve the purchase.

  • Project technology, capacity, and developer background
  • IRS pre-filing registration status and registration number
  • Placed-in-service date with supporting documentation
  • Prevailing wage and apprenticeship compliance evidence
  • Domestic content and energy community bonus eligibility
  • Recapture risk assessment and mitigation coverage
What makes this different

In a traditional transaction, the buyer's legal team spends weeks (or months) collecting these documents from the seller and their counsel. On DealStar, the report is complete before the credit is listed. Your review starts from a position of full information, not discovery.

3

Express Interest & Lock Terms

Days 5-10

When you find a credit that fits, express interest through the platform. DealStar generates a standardized term sheet based on the listing price and credit details. Both parties review and confirm terms electronically.

  • Standardized agreements reduce legal review time from weeks to days
  • Terms are locked once both parties sign -- no renegotiation risk
  • All communication and document exchange happens on-platform for a full audit trail
4

Fund Through Escrow

Days 10-20

Purchase funds are wired to an escrow account -- not directly to the seller. The escrow agent holds the funds until all conditions are satisfied: transfer documentation is executed, IRS forms are filed, and DealStar's verification is confirmed complete.

  • Escrow protects the buyer from loss if the transaction doesn't close
  • Funds are only released when all transfer conditions are met
  • The escrow process is managed by a qualified intermediary with experience in tax credit transfers
  • Both parties have visibility into escrow status through the platform
Why escrow matters

In bilateral deals, buyers often wire funds directly to sellers with limited recourse if documentation falls through. Escrow eliminates this risk. Your capital is protected until the credit transfer is legally complete.

5

Transfer Documentation & IRS Filing

Days 20-35

DealStar generates all required IRS transfer documentation, including the Transfer Election Statement, basis tracking records, and any applicable bonus credit documentation. The seller files the election; DealStar tracks confirmation.

  • Transfer Election Statement (Section 6418) generated automatically
  • Basis-in-credit documentation for your tax return
  • Complete record package for audit defense
  • All filing deadlines tracked and monitored by the platform
6

Escrow Release & Credit Applied

Days 35-45

Once all documentation is verified and filed, escrow releases the funds to the seller. You now hold the credit and apply it against your federal income tax liability on your return. The full transaction record remains accessible on-platform for compliance and audit purposes.

  • Credit is claimed on your federal tax return for the applicable tax year
  • Lloyd's of London insurance protects against post-transfer credit disallowance
  • Complete transaction archive maintained for the duration of the statute of limitations
  • DealStar support available for any post-transaction questions or IRS correspondence

Escrow-Protected Transactions

Your Funds Are Protected at Every Stage

The escrow structure ensures neither party is exposed to counterparty risk during the transfer process.

🏢
Buyer
Wires purchase amount
to escrow account
Funds
🔒
Escrow Agent
Holds funds until transfer
docs are verified & filed
Release
Seller
Receives payment only
after transfer is complete

Throughout the process, both parties have full visibility into the escrow status through the DealStar platform. Every action is logged and timestamped for complete auditability.

Common Questions

Buying Process FAQ

What is the minimum credit size I can purchase?

Credits on the platform range from under $100K to over $10M. There is no minimum purchase requirement, though most transactions are $250K and above.

Who qualifies to buy tax credits?

Any entity with federal income tax liability can purchase transferable credits under Section 6418 -- C corporations, S corporations, partnerships, and certain tax-exempt entities. Use our qualification wizard to check.

How does the insurance work?

Every credit on DealStar is backed by Lloyd's of London insurance. If the IRS disallows the credit after purchase, the insurance covers the buyer's loss. This is institutional-grade protection for every transaction.

Can I buy credits from multiple projects?

Yes. Many buyers assemble a portfolio of credits from different projects and technology types. The platform supports multiple concurrent transactions with independent escrow arrangements.

What happens if the transaction doesn't close?

Escrow funds are returned to the buyer if the transaction fails to close for any reason. The escrow structure is specifically designed to protect buyers from this scenario.

Do I need my own tax attorney?

We recommend having your tax advisor review the diligence report and transaction terms. DealStar's standardized documentation significantly reduces outside counsel time and cost compared to bilateral deals.

Help

Need Help?

Browse our help articles or contact support for assistance.