Reducing Tax Liabilities for Renewable Power Facilities

Reducing Tax Liabilities for Renewable Power Facilities

Kroll’s expertise in renewable energy tax Kroll’s expertise in renewable energy in select tax jurisdictions resolved a complex valuation dispute and helped lower tax liabilities for an owner, operator and developer of energy facilities dedicated to powering New England homes and businesses while reducing carbon emissions.

The Challenge

A publicly traded limited partnership that owns and operates renewable power generating facilities had increasing multimillion dollar property tax liabilities for its renewable properties. In hopes of getting taxes reduced, the client needed to gather and analyze value reduction arguments. However, historical data was not readily available, and their in-house tax resources were stretched thin. Additionally, certain performance data needed for value arguments was maintained over company-wide metrics systems, challenging Kroll to dig deep into the information to identify and argue for only those locations where legitimate value challenges existed.

Renewable power generating

Kroll’s Solution

Obtaining an understanding of the client’s assets, their accounting systems, and limited in-house resources required months of time and analysis. With our property tax team’s relationships with assessing officials and prior experience with similar renewable energy assets in the same tax jurisdictions, we were able to resolve valuation disputes in a short time frame without incurring any material costs for the client. We helped the client leverage value reduction positions on past projects in 2020 through 2022 to achieve approximately $10 million (mn) in annual property tax savings under multi-year agreements in several jurisdictions.

We helped the client leverage value reduction positions on past projects in 2020 and 2021 to achieve approximately $10M in annual property tax savings under multi-year agreements in several jurisdictions.

We helped the client leverage value reduction positions on past projects in 2020 and 2021 to achieve approximately $10M in annual property tax savings under multi-year agreements in several jurisdictions.

The Impact

The reputation and expertise of the Kroll Property Tax team allow for the resolution of valuation disputes for its clients no matter the level of complexity or limited client internal resources available. Our team of experts use finance, accounting and tax knowledge of sophisticated valuation methodologies to help address critical valuation issues when clients need us most.

Need help staying ahead of a complex challenge?

Talk to an Expert

The Impact

The reputation and expertise of the Kroll Property Tax team allow for the resolution of valuation disputes for its clients no matter the level of complexity or limited client internal resources available. Our team of experts use finance, accounting and tax knowledge of sophisticated valuation methodologies to help address critical valuation issues when clients need us most.

Need help staying ahead of a complex challenge?

Talk to an Expert

 

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