TAX LIABILITY INSURANCE

Our Tax Liability Insurance offerings include:

Tax Opinion Insurance, which insures a specific, known tax matter where the resolution is uncertain. When parties in a transactional context cannot agree on the effect or quantum of potential tax liability, this insurance may be used to help move the deal toward execution; and

Tax Credit Recapture Insurance, which insures a tax credit investor against the risk that its tax credits are challenged or clawed back by a governing tax body (whether US federal or state).

 

Benefits of Tax Opinion Insurance Benefits to Tax Credit Recapture Insurance
  • Allows for less monies left dormant in escrow
  • Caps financial exposure for specified tax risks
  • Bridges a negotiation impasse
  • Attracts different or new tax credit investors
  • Allows parties to finance a project with more clarity
  • Reduces over-extensions of counterparty risk