Industry Expertise | Power and Energy Property Tax Services
- Fixed Asset Intensive
- Private Equity
- Property tax reductions
State, county and municipal offices levy property taxes throughout the United States on power, energy, renewables and infrastructure assets as well as on railroads, telephone and cable companies, pipelines, and airlines.
For fixed-asset-intensive and industrial firms, these property taxes represent a large expense levied on non–real estate assets. Annual property taxes range between one and two percent of the book value of assets.
Management may not always be aware of the diverse strategies available for substantial and rapid reductions of what many consider a “fixed” expense.
CCA has been successful in reducing these property taxes by 35% on average – often within 6-24 months – and in mitigating property exposures in future years.
The effectiveness of CCA’s work is enhanced by its experience in virtually all jurisdictions and the bench strength of former field assessors and corporate property tax experts positioned throughout the country. These carefully selected industry experts have been recognized over the years for their rigorous knowledge of not only property tax laws but also the particular assessment processes in their respective jurisdictions.
1. Acquisition Tax Consulting (pre- and post-acquisition)
CCA identifies and produces significant savings in property taxes for investors in the “buy” and “sell” process. CCA’s work increases bottom-line profits, provides a greater profitability cushion and reduces acquisition risks.
2. Property Tax Analysis and Remediation
All 50 states levy property taxes on power, energy, renewables, infrastructure and fixed-asset-intensive industries. Frequently, the process employed to levy these taxes is inefficient and results in the payment of excess taxes over extended periods of time. CCA’s strategies correct these inefficiencies.
3. Property Tax Appeals
CCA rectifies property tax inefficiencies and ensures that these reductions are maintained in future years.
4. Incentives, Exemptions, Abatements and Other Business Incentives (PILOTs)
PILOTs and other business tax incentives are limited-term arrangements (5-15 years) that either carry a payment in lieu of taxes to a local government or take the form of a tax abatement. CCA has expertise in the establishment of PILOTs. CCA also advises on the accuracy of property tax exposures upon the expiration of such incentives.
5. Property Tax Audit Management
In certain states, either by regulation (such as California) or by policy, jurisdictions conduct routine property tax audits. CCA assists with tax audits and ensures the accuracy of audit results. Our enviable track record demonstrates that our clients realize consistent, significant refunds from audits.
6. Turnaround, Restructuring and Interim Support
Using our proprietary tools, CCA identifies and produces significant savings in property taxes when clients’ operations are under stress.
7. Real Property Tax Remediation (if assessed separately)
For real property taxes assessed separately, CCA ensures the accuracy of land and building assessments by following prescribed local appeal procedures. Upon obtaining reductions, CCA ensures that the reductions are reflected in clients’ tax payments or the resulting refunds are received.
Unmatched Network / Expertise
CCA’s field resources and network are unmatched with more than 200 experts, many of whom are former local assessors or corporate practitioners. In addition, CCA has developed more than 35 diagnostic strategies tailor-made for each jurisdiction to achieve maximum savings potential in municipal, county and state tax jurisdictions across the country.
CCA’s methods have been accepted without challenge by 98% of clients’ tax jurisdictions. For the remaining 2%, half have been satisfied with CCA’s responses and the remainder have been settled, arbitrated or otherwise adjudicated with CCA’s guidance.
By design, in-house time commitment is usually minimal. Clients typically spend fewer than 10 hours annually in assisting CCA with its field efforts.
Before engagement, CCA conducts a review that typically takes 2–4 weeks to determine if our work can assist the potential client. These pre-engagement reviews usually inform with 95% accuracy whether or not savings opportunities exist.
CCA’s engagement term is three years. On average, 80-90% of savings are realized in the first two years, with the third year serving to finalize strategies and transfer knowledge and best practices.
Our recent achievements were realized in the face of unique – even daunting – challenges. In each case, CCA used the correct combination of skills, manpower and tools to produce the desired results. We will be pleased to provide recent case studies upon your request. Click here to view customer testimonials.