Tax Benefits

That Can Help You Save

Tax Benefits of Energy Developments Investments

Who uses these types of tax benefits?

Accredited investors whose yearly tax burden approaches or exceeds $1,000,000 and pay the top Federal and State income tax brackets. Because these tax benefits reduce an investor’s tax burden by lowering their ordinary taxable income, their financial risk decreases as their tax burden increases.

Why do these tax benefits exist?

The 1986 Tax Reform Act intends to compel investment into developing domestic natural resources and relieve our dependency on foreign sources by implementing a considerable upfront tax deduction for investors participating in domestic exploration and production.

How much of the investment is tax deductible?

All of it! The Tax Code allows investors to deduct the entire investment amount against their ordinary income, the most challenging income to shield from taxation, in the year the investment is made.

Why should I consider this investment option?

Sophisticated investors participate in developing energy producing properties because they can subsidize a portion of their venture with tax dollars while targeting the attractive returns associated with high-risk investments.

"Something every accredited investor should know about."
- Bill D., Kansas City, MO.

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