TPL · 10-Q · 2026Q3 · Full report
Transferable Tax Credits
Texas Pacific Land Corp · 2026-11-04 · Importance 28 · Surprise 42 · In source text
For the nine months ended September 30, 2026, the Company agreed to purchase up to $60.0 million of transferable federal tax credits for $55.8 million, an estimated tax benefit of $4.2 million. By September 30, it had paid $25.5 million for $27.5 million of credits, with remaining payments expected during the rest of 2026 as credits were generated and transferred. The credits reduced federal income-tax payments and lowered the effective tax rate. Consolidated income-tax expense increased to $123.5 million from $100.5 million, primarily because operating income increased, partly offset by the tax-credit benefit.
Key facts
- Texas Pacific Land Corp agreed to purchase up to $60.0 million of transferable federal tax credits for $55.8 million, an estimated tax benefit of $4.2 million. source
- As of September 30, 2026, Texas Pacific Land Corp had paid $25.5 million for $27.5 million of transferable federal tax credits; remaining payments were expected during the remainder of 2026 as credits were generated and transferred. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | committed | +1.3% | Texas Pacific Land Corp agreed to purchase up to $60.0 million of transferable federal tax credits for $55.8 million, an estimated tax… |
| cash | negative | committed | -1.3% | Texas Pacific Land Corp agreed to purchase up to $60.0 million of transferable federal tax credits for $55.8 million, an estimated tax… |