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Tax Incentives for the Mining Industry

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Mining companies operate in one of the most capital-intensive and operationally complex industries, with continuous investment in extraction, processing facilities, infrastructure, and equipment. These long-term investments, combined with evolving regulatory and tax requirements, create meaningful opportunities for tax savings that are often overlooked.

KBKG helps mining companies identify and maximize tax incentives related to Research and Development (R&D) Tax CreditsCost Segregation / Fixed AssetsTransfer Pricing, and IC-DISC.

Our experienced team works to uncover overlooked deductions and credits, improve cash flow, and help mining operators fully leverage available federal and state tax benefits.

Mining Industry Tax Saving Opportunities

Research and Development (R&D) Tax Credit

Federal credit worth approximately 7% to 10% of qualified research expenditures related to designing, developing and improving processes, formulae, and software. State R&D tax credits may also be available, allowing eligible companies to maximize their tax benefits.

Cost Segregation for Buildings & Improvements

Any building acquisition or/and improvements over $1.5M should be reviewed for proper classification of the individual components for tax depreciation.

Fixed Asset Review

Evaluating a company's entire fixed asset schedule to identify assets that can be optimized for federal and state tax purposes. Taxpayers utilizing the book method of accounting for tax are not maximizing their available deductions.

Transfer Pricing

Cross-border transfer prices drive how much income tax a multinational company pays by country. Transfer pricing regulations apply to the intercompany prices of goods, services, royalties, and loans across all industries. Many companies can realize significant tax savings through transfer pricing strategies.

IC-DISC

The IC-DISC is a federal tax incentive that provides significant, permanent tax savings for U.S. companies that export.

Mining Industry Tax Insights

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