Unity Bancorp, Inc. filed a current report on Form 8-K on September 10, 2026, disclosing the purchase of approximately $27.6 million in transferable federal investment tax credits under Section 6418 of the Internal Revenue Code.

Key Highlights

  • Tax credits purchased: Unity Bancorp acquired approximately $27.6 million of transferable federal investment tax credits on September 10, 2026.
  • Purchase price: The company paid approximately $25.1 million, representing approximately $0.91 per dollar of tax credit.
  • Expected income benefit: The company currently expects to recognize a one-time reduction in income tax expense, and corresponding increase in net income, of approximately $2.5 million during the quarter ending September 30, 2026.
  • Utilization method: The company intends to utilize the credits primarily through a carry-back claim permitted under applicable federal tax laws.
  • Recapture period: Under applicable federal tax rules, the transferred tax credits remain subject to a five-year recapture period.

Unity Bancorp Discloses Section 6418 Tax Credit Purchase and Expected Q3 Income Impact

According to the filing, Unity Bancorp, Inc. (NASDAQ:UNTY), headquartered in Clinton, New Jersey, purchased approximately $27.6 million of transferable federal investment tax credits pursuant to Section 6418 of the Internal Revenue Code. The company disclosed that it paid approximately $25.1 million for the credits, equating to a purchase price of approximately $0.91 per dollar of tax credit.

The company stated it intends to utilize the acquired tax credits primarily through a carry-back claim permitted under applicable federal tax laws. As a result, the company currently expects to recognize a one-time reduction in income tax expense, and a corresponding increase in net income, of approximately $2.5 million during the quarter ending September 30, 2026. The filing notes these expectations are forward-looking statements, subject to the company's cautionary language and risks described in its filings with the Securities and Exchange Commission.

The filing further disclosed that the company "obtained customary tax, legal and other third-party diligence in connection with the transaction" and characterized the investment as consistent with its strategy of "prudently enhancing shareholder value through selective tax-advantaged investments." The company also noted that it obtained "customary contractual protections and other credit support designed to mitigate potential recapture-related losses" in connection with the five-year recapture period that applies to the transferred credits under federal tax rules. The report was signed by James Davies, First Senior Vice President and Chief Financial Officer.

What Was Disclosed

Unity Bancorp disclosed the September 10, 2026, purchase of approximately $27.6 million in transferable federal tax credits for approximately $25.1 million, with an expected one-time net income benefit of approximately $2.5 million in the quarter ending September 30, 2026.