Energy

ENERGY

We help solar providers navigate asset valuation issues caused by rapidly declining costs in technology, while helping oil and gas companies resolve asset over-valuation issues caused by fluctuating commodity prices.

Navigating Change in the Energy Industry

The energy industry continues to experience significant change as renewable energy sources grow in popularity and fluctuations in oil prices impact oil field services, oil field manufacturing, and pipe processing providers. We help companies in the energy sector navigate these changes and the impact on their complex industrial property taxes.

Complex Property Tax Expertise: Renewable Energy

Investments in renewable energy assets present unique challenges as they are relatively new (thus, early in their depreciation cycle) and their replacement costs continue to decline as advancements in technology and widespread market adoption lowers production costs.

Photovoltaic (PV) solar module technology is one asset category where prices continue to decline rapidly. As a result, the Replacement Cost New (RCN) of utility-scale solar installations erodes the Fair Market Value (FMV) of the assets. The difference between Reproduction Cost (indexed original cost) and RCN is functional (technological) obsolescence.

Because the assessor’s formula for these assets incorporates Replacement Cost, it overstates Fair Market Value – and thus, the tax burden on those assets. This is the situation a 35 MW utility-scale solar plant found itself facing before we stepped in to help them establish a correct asset valuation that produced millions of dollars in savings.

Get a risk free analysis

 

Solar

Complex Property Tax Expertise: Oil & Gas

The challenge for oil and gas companies is a combination of fluctuating prices for their output, along with the FMV valuation issues described above.

In one example, we have helped an upstream oilfield service provider identify and demonstrate extraordinary loss in asset Fair Market Value of their OCTG inventory as well as identify reporting issues such as erroneously reporting depreciating fixed assets as inventory.

We have also assisted oil field services clients with obsolescence challenges driven by declines in demand from fluctuating oil prices.

refinery

Specialized Knowledge

We apply our specialized knowledge of the energy industry to successfully help our clients identify and appeal over-valuation of their exploration, production, and alternative energy assets -- resulting in millions of dollars of industrial property tax savings.

Let us do the same for your business.

Resulting in Millions of Dollars of Industrial Tax Savings

Success Stories

LongSol

Longsol Logo

$3.1M
ANNUAL
SAVINGS
TAX SAVINGS OF 80%
Industry Association:
ENERGY
Industry Association
ENERGY
  • Our multi-year representation of Longsol’s Webberville, Texas plant, based on the diminished replacement cost of PV modules, has generated savings greater than $3.1 million.

Enjet

Enjet

$287K
ANNUAL
SAVINGS
TAX SAVINGS OF 42%
Industry Association
ENERGY
Industry Association
ENERGY
  • Our successful “equal and uniform” appeal of GTI’s Pelican Island chemical storage terminal per TPTC 42.26 (a) (3) yielded an approximate 42% annual savings.

Expro

Expro

$160K
ANNUAL
SAVINGS
TAX SAVINGS OF 50%
Industry Association
ENERGY
Industry Association
ENERGY
  • 49.81% assessment reduction
  • Negotiated an accelerated depreciation schedule for their field rental tools

What Clients Say

Quotes

I have worked with John and the rest of the Industrial Property Tax Solutions team the last three years. They are highly capable tax professionals who possess a wonderful combination of tax technical skills and people skills, which are both necessary to navigate the pitfalls of state and local property taxes. With their assistance, we have lowered our annual property taxes.

- Scott Dant, Director of Tax -

American Commercial Barge Line LLC

What Clients Say

Quotes

I worked with IPTS' John Woolard, during my 17 year tender at Odfjell Houston. John had a sound understanding of our business which enabled him to apply innovative ideas, that were later used during our HCAD mediation process. As a direct result of his field work and experience, we were able to reduce our out-of-line HCAD property tax values from $60M to $38M culminating in major tax savings. John maintained strong working relationships with HCAD tax appraisers and he continuously sought ways to reduce our tax values. He gets results.

- Albert M. Noggle, Retired CFO and Interim President -

Odfjell Holdings US Inc

What Clients Say

Quotes

I’ve had the pleasure of working with John over the past 7 years. During this time he has shown me to be reliable, responsive and reasonable in his approach. Overall, he has served as a solid partner and has been instrumental in reducing our property taxes.

- Craig Wohlfort, Controller -

Austin American-Statesman

What Clients Say

Quotes

I have been worked with IPTS for three years. They are efficient and timely in the services that they provide for HID, and a great source of reference on Texas property tax issues. They keep us apprised of emerging tax related concerns in Austin.

- Teresa Wagner - Assistant Controller -

HID North America