Tax Incentives for the Mining Industry

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Reviewed and updated September 2026

Mining companies may improve cash flow and reduce tax liability through Research and Development (R&D) Tax Credits, Cost Segregation, Fixed Asset Studies, Transfer Pricing, IC-DISC, and other federal, state, and local tax incentives. The opportunities available depend on the company’s mining and extraction activities, processing operations, property and equipment investments, research and development projects, and specific business circumstances.

KBKG is a national tax specialty firm that helps mining companies identify, document, and support federal, state, and local tax incentives related to Research and Development (R&D) Tax Credits, Cost Segregation / Fixed Assets, Transfer Pricing, and IC-DISC.

KBKG’s tax specialists have experience helping mining companies evaluate qualifying activities, facilities, equipment, projects, and expenditures to identify available tax incentives. Our team helps businesses document and support eligible tax positions while pursuing applicable federal, state, and local 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

Building acquisitions, new construction, and major improvements 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

When Should Manufacturers Update a Predominant Use Study?

Many manufacturers unknowingly pay sales tax on utilities that may qualify for exemption under state manufacturing rules. A predominant use study…

Questions to Ask Before Hiring an R&D Tax Credit Provider

Selecting an R&D tax credit provider is a risk-management decision. A research tax credit claim may ultimately be reviewed by the IRS or a state…

KBKG Tax Insight: How to Allocate Land vs. Building Values for Investment Property

Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube See If You Qualify Allocating an investment property’s purchase price between land and depreciable improvements directly affects the deductions available to the owner. Land cannot be depreciated, while buildings and qualifying site improvements may be depreciated over their applicable recovery periods. Purchase

Tax Incentives for the Mining Industry

Find out if you qualify

Mining Industry Tax Saving Opportunities

Research and Development (R&D) Tax Credit