HPIP Tax Credit Transfers

Home / Programs & Services / High Performance Incentive Program (HPIP) / HPIP Tax Credit Transfers HPIP Tax Credit Transfers During the 2021 Legislative Session, Senate Bill 65 was passed and signed by Governor Kelly. This legislation will permit an HPIP certified company to transfer HPIP tax credits, under certain conditions, to another entity or individual. General HPIP Tax Credit Transfer Requirements The company must be HPIP certified for the tax year generating HPIP tax credits. For projects placed into service on and after January 1, 2021, a taxpayer may sell or transfer up to 50% of the tax credit allowed. The taxpayer may sell or make a transfer to one or more transferees, but the total of all transfers shall not exceed 50% of the taxpayer’s HPIP tax credit. An HPIP certified company may request up to two transfers of eligible HPIP tax credits within a single tax year. The portion of HPIP tax credits generated in the tax year that are eligible for transfer (50%) may not be carried forward to subsequent tax years for a future transfer. For example, if a calendar year taxpayer with $2,000,000 in HPIP tax credits generated, could transfer up to 50% or $1,000,000 of tax credits. If they only transfer $700,000 to a third party, the remaining $300,000 may not be transferred i