I am a serial entrepreneur who started my own PE fund 15 years ago. I have accumulated tax credits (NOL's) and in a profitable LLC or LP, my partner can utilize these to generate a dramatic boost in After-tax income. Since these are at the LLC level, they can only be used by similar pass-thru entities such as LLC's and LP's, with taxable income of at least $500k and preferably above $1MM.. There are no esoteric rules for using this as opposed to solar credit or R&D credits, they apply against ordinary income taxed at the highest rate

This structure can work for an existing business, or for someone who is in the late stages of a search and would like a "bolt-on" strategic partner, who will add value in the business thru service and can add value to the bottom line

In short, the fund I could be a Minority Partner (if it invest) who would add a great deal to the business via my past experience and my strategic tax credits, or even structure it on a consultancy with . no direct ownership

This is the ultimate WIN-WIN scenario and can be structured in a variety of ways to best reach your business goals