How we score sponsors
Every sponsor is scored with the same 100-point rubric using only evidence we can point to. Here is exactly how.
Evidence only
Points are awarded only for evidence found in public records or supplied by the firm and checked. We don’t award points for claims we can’t verify.
Same rubric for everyone
Every firm is scored on the same items and weights. Payment never changes a score, a ranking or a warning; listings are alphabetical.
Correctable
If a fact is wrong or out of date, request a correction. Firms can register and submit proof, which may raise their score.
Categories and weights
| Category | Weight | Items |
|---|---|---|
| Regulatory record | 25 | R1 (5), R2 (8), R3 (6), R4 (4), R5 (2) |
| Tax-controversy record | 20 | T1 (8), T2 (6), T3 (4), T4 (2) |
| Litigation & complaints | 15 | L1 (6), L2 (4), L3 (3), L4 (2) |
| Transparency | 15 | X1 (4), X2 (4), X3 (4), X4 (3) |
| Substance & verifiability | 15 | V1 (6), V2 (4), V3 (3), V4 (2) |
| Structure quality | 10 | Q1 (4), Q2 (2), Q3 (2), Q4 (2) |
The scoring items
Regulatory record · 25 points
| Item | Max | How we check it | Sources | Scale |
|---|---|---|---|---|
| R1 Registration status verified for firm and soliciting individuals where required (BD/IA/state; insurance producer if relevant) | 5 | Screenshot/PDF of BrokerCheck / IAPD / state lookup with capture date | FINRA BrokerCheck; SEC IAPD; state securities regulator (NASAA directory) | 5 = all required registrations verified; 3 = registered but gaps/unclear who solicits; 0 = unregistered persons soliciting securities |
| R2 No SEC/FINRA disciplinary events for the firm (10-yr lookback) | 8 | BrokerCheck/IAPD disclosures; SEC litigation releases & admin proceedings search | SEC litigation releases; SEC administrative proceedings; FINRA disciplinary actions | 8 = none; 4 = minor/old resolved; 0 = fraud-related or recent |
| R3 No disciplinary events for principals/control persons (10-yr lookback) | 6 | Individual BrokerCheck/IAPD; SEC/FINRA bars; state orders | Same as R2 + state orders | 6 = none; 3 = minor; 0 = bar, fraud finding, or undisclosed history |
| R4 No state securities-regulator or state AG actions against firm/principals | 4 | State regulator enforcement pages; AG press releases | State securities regulators; state AGs | 4 = none; 0 = any action relating to the offering type |
| R5 Named licensed professionals (CPA/attorney/EA) in good standing | 2 | State CPA board lookup; state bar lookup; IRS directory of preparers (if applicable) | State boards of accountancy; state bars | 2 = verified; 0 = discipline or cannot verify claimed credentials |
Tax-controversy record · 20 points
| Item | Max | How we check it | Sources | Scale |
|---|---|---|---|---|
| T1 Strategy is not a listed transaction / transaction of interest and not a current Dirty Dozen theme | 8 | Compare to IRS listed transactions page + Federal Register final regs + current Dirty Dozen | IRS Listed Transactions; Federal Register; IRS Dirty Dozen | 8 = clean; 4 = adjacent theme (e.g., non-cash charitable) with strong safeguards; 0 = listed/TOI (also triggers RF5) |
| T2 No DOJ Tax Division injunctions / IRC §§6700, 6701 promoter cases against firm or principals | 6 | DOJ Tax Division & USAO press releases; PACER/CourtListener search | DOJ Tax Division; PACER; CourtListener | 6 = none; 0 = any (also triggers RF7) |
| T3 No adverse Tax Court / appellate opinions involving the sponsor's prior deals | 4 | U.S. Tax Court opinion search; CourtListener | U.S. Tax Court; CourtListener | 4 = none; 2 = mixed/settled; 0 = adverse holding on same structure |
| T4 Provides clear reportable-transaction disclosure guidance (Form 8886/8918) where applicable | 2 | Offering docs; client disclosure materials | IRS Forms 8886/8918 instructions | 2 = clear or N/A-justified; 0 = absent where required |
Litigation & complaints · 15 points
| Item | Max | How we check it | Sources | Scale |
|---|---|---|---|---|
| L1 No material civil fraud/misrepresentation litigation (firm, principals, affiliates) | 6 | PACER; state court portals; news search | PACER; state dockets; news archives | 6 = none; 3 = resolved, non-fraud; 0 = pending fraud claims |
| L2 Complaint pattern reasonable (BBB, state AG, CFPB where relevant) | 4 | BBB profile; AG complaint data; CFPB database where applicable | BBB; state AG; CFPB complaint database | 4 = none/minor; 2 = moderate unresolved; 0 = pattern of similar complaints |
| L3 No bankruptcy/insolvency pattern among principals or affiliates | 3 | PACER bankruptcy search; UCC/lien search (paid) | PACER; UCC/lien databases | 3 = none; 0 = repeated failures of prior vehicles |
| L4 Entities in good standing with Secretary of State; legal entity names match marketing | 2 | SOS registry printouts | State Secretary of State registries | 2 = verified; 0 = not in good standing / mismatch |
Transparency · 15 points
| Item | Max | How we check it | Sources | Scale |
|---|---|---|---|---|
| X1 Fees and total costs published or provided in writing before commitment | 4 | Fee schedule / PPM fee table | Firm materials | 4 = full written fee disclosure; 2 = partial; 0 = refuses |
| X2 Offering documents available before commitment; Form D on EDGAR where applicable | 4 | PPM/subscription docs; EDGAR Form D search | SEC EDGAR | 4 = docs + Form D consistent; 2 = docs only; 0 = no docs |
| X3 Names tax counsel / opinion issuer and allows direct verification | 4 | Opinion letter (redacted OK); counsel confirmation | Firm materials; state bar | 4 = named and verified; 2 = named, unverified; 0 = anonymous |
| X4 Discloses audit/examination and claim history of prior deals | 3 | Written disclosure; insurance claim history | Firm materials | 3 = full; 1 = partial; 0 = refuses |
Substance & verifiability · 15 points
| Item | Max | How we check it | Sources | Scale |
|---|---|---|---|---|
| V1 Underlying assets independently verifiable (e.g., interconnection agreements, utility records, deeds, dated site evidence) | 6 | Third-party documents; utility/ISO queue data; county records | Utilities/ISOs; county recorders | 6 = verified by Platform analyst; 3 = documents provided, not independently confirmed; 0 = unverifiable |
| V2 Placed-in-service / completion evidence for prior projects | 4 | PTO letters, commissioning reports, COs | Utilities; local building departments | 4 = verified for sample of prior deals; 0 = none |
| V3 Appraisals by independent credentialed appraisers (not promoter-selected) | 3 | Appraiser credentials; engagement letter | Appraiser licensing boards | 3 = independent; 1 = credentialed but promoter-selected; 0 = none/unqualified |
| V4 Pre-tax economic substance: investment case exists apart from tax benefits | 2 | Pro forma; revenue contracts (PPAs, leases) | Firm materials | 2 = credible pre-tax return; 0 = return is tax benefit only (see RF3) |
Structure quality · 10 points
| Item | Max | How we check it | Sources | Scale |
|---|---|---|---|---|
| Q1 Independent legal opinion (not solely promoter-paid boilerplate) | 4 | Opinion letter; issuer independence | Firm materials; state bar | 4 = independent, reliance permitted; 2 = promoter-commissioned; 0 = none |
| Q2 Tax insurance verified directly with named carrier/broker (policy exists, scope understood) | 2 | Carrier/broker confirmation | Carrier/broker | 2 = verified; 1 = claimed, unverified; 0 = none or misrepresented. N/A allowed |
| Q3 Fees reasonable relative to comparable offerings | 2 | Comparison set of at least 3 offerings | Directory data | 2 = in range; 0 = outlier |
| Q4 No guaranteed outcomes, benefit multiples or 'audit-proof' claims | 2 | Marketing review (site, decks, ads) | Firm marketing | 2 = clean; 0 = any such claim (also triggers RF2) |
Statuses
- Verified: positive evidence found and linked.
- Verified (nothing found): we searched the listed public sources and found nothing adverse. This is limited to the sources named.
- Unverified: could not be checked from public records. No points are awarded; the points are shown as pending.
- Not applicable: the item doesn’t apply, with a reason. The score is normalized over applicable points.
Caps
Certain findings limit a score no matter how many other points were earned. When one applies, the score shown is the lower of the points earned and the cap, and the page says the score is held to the cap. If more than one applies, the lowest cap wins, and a person reviews it. A firm that supplies evidence addressing the finding can ask for it to be re-reviewed.
| Code | Finding | Effect |
|---|---|---|
| RF1 | Promises deduction/credit worth a multiple of cash invested (cf. 2.5x conservation-easement line, IRC §170(h)(7) / Notice 2017-10) | Cap 39 + human review |
| RF2 | 'Guaranteed', 'audit-proof', 'IRS-approved', 'eliminate your taxes' language | Cap 59 + human review |
| RF3 | Tax benefit is the main economic return and assets cannot be independently verified; lease-back arrangements with no investor control | Cap 39 + human review |
| RF4 | Deadline pressure with no offering documents, or promoter-selected appraiser | Cap 59 + human review |
| RF5 | Connection to a listed transaction / transaction of interest without clear Form 8886/8918 disclosure guidance | Cap 39 |
| RF6 | Unregistered persons soliciting securities investments for transaction-based (success) fees | Cap 39 + human review |
| RF7 | Principals with disciplinary history, prior promoter injunction (§§6700/6701), or bankruptcy pattern | Cap 39 + human review |
| RF8 | Material inconsistency between marketing claims and documents (e.g., insurance, opinions, credentials) | Cap 59 + human review |
| RF10 | Firm pays the Platform (sponsor/advertiser) | No cap; 'Sponsored' label; sponsorship must not affect score |
| RF11 | Financing or loan term far longer than the useful life of the financed equipment (term more than twice the stated or typical useful life), shown in public or attributed documents | Cap 59 + human review |
| RF12 | Seller-provided or promoted 0% interest financing, which raises at-risk and fair-market-value questions for any credit or depreciation claimed (marked for tax-counsel review; not a conclusion), shown in public or attributed documents | Cap 59 + human review |
| RF13 | Promotes a trust arrangement claimed to eliminate or indefinitely defer income tax on income the client still controls (for example, assigning earned income to a trust, or paying personal expenses through it as deductions), the pattern described in IRS abusive trust warnings, shown in public or attributed documents | Cap 39 + human review |
Complaints
Anyone can report a complaint about a sponsor, anonymously or with a free account. A complaint can be marked private: private documents and details are seen only by our reviewers and are never shown publicly or sent to the firm. Every sponsor page shows how many complaints are under review, including private ones. A reviewer reads each complaint and accepts it for review only if it describes specific, firsthand facts; the firm can respond. Complaints are allegations until a reviewer decides, and we never publish the complainant’s identity or the description.
Accepted complaints add scrutiny and can limit a score, the same way for every firm. Complaints from the same person count once.
| Level | When | Score limit |
|---|---|---|
| Added review | At least 1 serious complaint, or at least 3 complaints of any category, are counted (distinct complainants). | Cap 69 |
| Repeated complaints | At least 2 serious complaints, or at least 5 complaints of any category, are counted (distinct complainants). | Cap 59 |
| Substantiated serious complaint | At least 1 serious complaint is marked substantiated by a reviewer (with a written note). | Cap 49 |
Serious categories: tax benefits or returns described in a misleading way; money paid and not delivered or not returned; licenses, credentials or registrations misstated; irs notice or disallowance after relying on the firm's materials. A limit is lifted when the complaints behind it are closed as not substantiated or withdrawn.
Bands
| Band | Score |
|---|---|
| Strong evidence | 85 to 100 |
| Good evidence | 70 to 84 |
| Mixed evidence | 55 to 69 |
| Weak evidence | 40 to 54 |
| Serious concerns | 0 to 39 |
Bands describe how much checked evidence we found. They are not endorsements and not accusations. We never call a firm approved, certified or vetted.
Where the information comes from
Public sources only, such as SEC and FINRA lookups, federal court dockets, IRS notices, state announcements and the firm’s own public website, each linked on the firm’s page with the date retrieved. We don’t contact firms to collect information for unclaimed listings, and confidential submissions from registered firms stay private.
Claiming a listing and raising a score
A firm marked Unclaimed can register and claim its listing. After identity and business verification, it can submit proof for items we couldn’t verify (for example, a named legal-opinion issuer, a carrier confirmation or offering documents). A reviewer checks each item and updates points; the evidence and date are shown. Documents may be marked public or kept private; private documents are used for review only.