A client of ours acquired several coal plants in 2013 where a water purification plant had been constructed to comply with EPA regulations.
This plant was constructed to facilitate the purification of water used in the manufacturing/extraction process and is centrally located for accessibility to each mine.
Swartz + Associates reviewed the plant and costs. We dug into state law about taxation related to improvements like the purification plant. We found a law that allows significant tax breaks for equipment used to protect the environment.
This resulted in millions of dollars in tax savings annually.
Additionally, due to our expertise in valuing mining equipment, we were able to reduce the market values an additional 20% on each of the facilities, further reducing the taxes for our client.