Contingent Tax Credits
Cimarron's team invented both the idea and the system for using contingent tax credits to help capitalize a regional private equity program.
Contingent tax credits are very different from standard incentive tax credits. With the latter, a state is certain to experience a reduction in revenue with each tax credit allowed. In contrast, contingent tax credits are designed to minimize the use of credits.
Usually, contingent tax credits enable a state to raise capital at a low cost while retaining investment profits.