Projects
GAIN Division
Biofuels Facility
Engagement Overview:
A BioFuels company engaged Bedford Tax Solutions to negotiate the incentives and credits for the establishment of a $170 million bio-fuels facility in the South Central area of the U.S.
About The Client
The client is a newly formed Delaware Limited Liability Company specifically created to develop, construct and own a multi-component Integrated BioFuels Facility.
Bedford GAIN Services
Bedford’s consultants assisted with the analysis and selection of finalist sites for this facility in the South Central region of the United States. We contacted representatives from state, local and federal government in addition to regional utility representatives in order to identify all potential sources of grants, tax abatements, credits and other government assistance. In addition, we analyzed each potential site to determine if any state, local or federal zone benefits could affect the project. Through a series of meetings with state, federal and local officials, we created a competitive site selection situation and prepared an analysis of each state and area’s incentives and the impact of those incentives on project economics. Bedford worked with the finalist state and community in order to secure final documentation and then provided compliance services to ensure the ultimate delivery of these tax credits and incentives.
Estimate of Benefits & Savings:
Bedford consultants were successful in negotiating a number of grants, tax credits, real and personal property tax abatements and fee waivers to create up to $56.3 million in savings the company. Among the benefits were:
- Federal New Market Tax Credits benefits of $8 million
- Sales and Use Tax Refund on Construction Materials and M&E: $3 million
- Infrastructure Development Grant: $4 million
- State Investment Tax Credit: $20 million
- Payroll Rebate: $1.5 million
- Local Attraction Grant: $90,000
- State Training Grant: $130,000
- Federal Loan Guarantee: $19,592,000
Actual Client Savings:
Total tax credit and direct financial benefits to our BioFuels client: $56,312,000