For over 35 years, the KE Andrews Renewable Energy Division has been saving our clients millions of dollars annually in tax. Due to the nature of these subsidies, there is a significant opportunity for tax savings in this area year after year. Over the years we’ve assembled a team of renewable industry experts, all of whom have played an integral part in creating proprietary valuation systems that are unmatched. We work with developers on exemption applications and abatements, as well as operators who require valuations, negotiations and representation year after year.
Our advanced capabilities translate into tax savings for our clients over and above what they’ve experienced by either outsourcing or doing it themselves. Our goal is to provide real value in terms of dollars year after year that exceeds expectations on an on-going basis. As a result of our highly qualified industry specialized staff, advanced systems, and superior customer service, KE Andrews represents over 4,500 MW of renewable energy across North America. We are also the leader in 313 applications and 312 tax abatements in the state of Texas. Please contact us if you’d like a free evaluation of your tax position.
Over the years, KE Andrews has built proprietary state-of-the-art property tax software that is designed specifically for the process of oil and gas, renewable energy, and commercial real estate valuation. It has been built to produce a maximum tax savings situation for our clients, along with providing administrative advantages that are unmatched in the industry.
Many states have tax incentive programs in place for renewable energy. In the state of Texas particularly, Chapter 312 abatements and Chapter 313 applications are available to renewable energy taxpayers. Chapter 312 Tax abatements are local agreements between a taxpayer and a taxing unit that exempts all or part of the value of the real property and/or tangible personal property from taxation for a period not to exceed 10 years. Abatements are typically available to cities, counties, and special districts. The taxing units use them as an economic development tool to attract new industries and to encourage the retention and development of existing businesses through property tax exemptions or reductions in value. A Chapter 313 appraised value limitation is an agreement in which a taxpayer agrees to build or install property and create jobs in exchange for a 10-year limitation on the taxable property value for school district maintenance and operations tax (M&O) purposes. The minimum limitation value varies by school district, and the application for a limitation on the appraised value for M&O purposes only is submitted directly to the school district and requires an application fee that is established by each district. With KE Andrews being directly involved in over 20% of all of the 313 applications in the state of Texas, we’ve become experts at securing these benefits for our clients. Through our dealings with different ISD’s, county judges and other various jurisdiction types, we’ve developed expertise in this area that is difficult to replicate. You can be sure that you will be getting the very best in representation for your next project.
Our renewable energy tax consultants file renditions, and aggressively analyze and negotiate your assets to come to a fair market value for assessment. There are several methods applied to these assets, depending on the state of location. KEA retains experts in every state where renewable energy assets reside. We’ve also developed long term relationships with local and third party assessors and appraisers, which helps us in the negotiation process. We are prepared to handle clients of all sizes seamlessly, becoming your property tax department down the hall.
In most states, either after an initial informal negotiation period or after the filing of a rendition, the assessor issues a ‘notice of value’ (NOV) to the taxpayer. In cases where a rendition was filed, KE Andrews will review every single NOV to ensure accuracy, and will contact counties for corrections in cases where there are errors. Every single NOV is reviewed along with an aggressive valuation analysis of each asset, and our appraisers determine cases where an appeal is warranted.
When an agreement is not reached in the informal negotiation period with the assessor or third-party appraiser, and certain NOV’s are issued that we determine to be unfair, we will file a formal appeal with the county and prepare to present a case before the local board of assessments. We make it a point to go to board hearings every year, firstly because many times we are able to again negotiate and come to an agreement immediately prior to the hearing, and secondly we feel it is important to meet the assessors and third-party appraisers in person to establish and maintain a healthy working relationship. KEA maintains a highly successful track record when presenting oil and gas cases at board hearings.
After board hearings are complete, values become finalized. At this point, KE Andrews is able to compile tax accruals for our clients based on the final values issued by the county. Accrual reports are issued at minimum once per year after values are finalized, but they can be updated at different points throughout year at the client’s request.
After values are finalized, tax bills are issued by the county treasurer or tax collector, along with other taxing jurisdictions. Tax due dates vary by state. KE Andrews is here to review every single tax bill for accuracy, and will process them to the client for timely payment. We have adopted several methods to execute the tax payment process. Ask us about our “KEA Administrative Advantages.”
KE Andrews annually maintains a SOC1 Type 2. This is an audit of our processes and controls, ensuring that we do what we say we are doing year after year. These audits are extremely valuable to publicly traded companies that require SOX compliance.
Chapter 312 Abatement and Chapter 313 Limitation Consulting
While we manage the application process for our clients heavily in the state of Texas, we also handle a significant volume of applications & exemptions work for large utility-scale clients nationwide in any state where incentives are available.