Question: In many states, an acquired company’s tax liabilities often transfer to us as the buyer, do credits and incentives transfer as well?

A: When valuing an equity or asset for purchase, says legal firm Horwood Marcus & Berk on its blog, determine whether prior credit and incentive negotiations will withstand the transaction. Investigate whether you’ll be able to reach a pre-sale agreement with the applicable governing jurisdiction to secure any credits and incentives before agreeing to terms with the seller. For example, equity sales under federal tax law are considered asset sales for most state taxes. 

In an…