New Online Exchange for Trading State Tax Credits Launches
The Online Incentives Exchange (OIX) Brings Transparency & Liquidity to a National Market
NEW YORK and NEW ORLEANS, Nov, 12, 2012 /PRNewswire/ -- The Online Incentives Exchange (The OIX) (www.theOIX.com) has begun operations as the first truly national, transparent, liquid exchange for the trading of state tax credits.
The OIX is initially facilitating a market for transferable tax credits in Louisiana, with plans to roll out nationally to all 45 states that offer transferable and/or refundable tax credits. In December 2012, the Exchange will enable the trading of tax credits in California and Georgia.
The US market for monetizeable credits exceeds $5 billion annually. Currently, tax credits trade via direct brokerage in an opaque and often illiquid manner. The OIX provides a transparent marketplace that connects buyers and sellers of state tax credits to transact directly on a Bid/Ask platform. In Louisiana alone there are over $300 million in transferable tax credits issued on an annual basis.
"Many growing businesses are not well informed about the availability of tax incentives in their state, and, moreover, they often find the process to be complex and cumbersome, with very few monetization options available," said Daniel Bigel, co-founder and chief executive officer of the OIX. "The OIX will democratize this market by empowering all taxpayers – individuals and businesses of any size – to access this market, enabling them to offset tax liability and re-invest capital in the local economy."
Bigel added, "By providing liquidity to the tax credit market, and empowering small and mid-sized businesses to participate, we are strengthening these invaluable state tax incentive programs, enabling businesses to fund economic growth and add jobs. The OIX will help states that offer these incentives to encourage broader use of tax credits to fund economic expansion in their communities."
"We, at the state and federal level, have worked hard to create tax credit incentives in order to support growing businesses and serve as a job creator," Michael J. Olivier, Former Louisiana Secretary of Economic Development; CEO Committee of 100 for Economic Development. "The OIX system will align the interests of all parties, increase participation in these valuable programs and help businesses of all sizes realize their benefits."
Membership, Vetting & Clearing
The Exchange is membership-based to ensure that all market participants are duly vetted, guaranteeing the legitimacy of each trade. The OIX has put in place strict procedures to ensure that only qualified organizations can become Members and thus market participants.
The Exchange's verification process also vets each and every credit that is submitted for sale with the state governing agency that issued the credit. Furthermore, The OIX handles all aspects of clearing and escrow services on the backend of a trade to ensure a smooth transfer process for the Members of the Exchange.
In the first few weeks since the Exchange has been live, more than 50 companies have become Members. They include: major and mini-major Hollywood studios (who generate a large portion of state incentives on an annual basis), real estate developers, major commercial and regional banks, big four/regional/national accounting firms, wealth management firms, family offices, advisory firms, investment banks, public and private companies, etc.
About the OIX
The Online Incentives Exchange (The OIX) (www.theoix.com) is the national online exchange for the US State Tax Credit Market. The OIX provides a transparent platform and a true Bid/Ask marketplace for US State Tax Credits, where price discovery is achieved through a modern, reliable and highly sophisticated trading environment. Through the OIX, Members can buy and sell vetted tax credits through a standardized clearing process. Additionally they have access to real-time price data and comprehensive information regarding available credits in every state. For more information on the OIX visit www.theOIX.com.
CONTACT: Danielle DeVoren, 212-896-1272
SOURCE The Online Incentives Exchange
Share this article