Think about it like this, assuming we keep hitting our projected numbers and adding in the tax deductions, an investor who is in the upper tax bracket could get more than 75% of their original invested capital back after the first full year of distributions.
Turning Coal Into Profits
What if you could invest in an asset class that would have exposure to a highly sought after commodity without a lot of the downside risks that are considered normal in the conventional commodities markets?
And what if you could get the same tax treatment that you get when you invest in the oil and gas sector where the depreciation/depletion offsets the tax liability on your ordinary income?
Well now you can, and we are excited to be sharing this investment opportunity with you.Carbon Report
Here is our perspective on some of the things we like about this investment opportunity:
We like the team, they are connected in the space and they have a great team of competent folks on staff. Our CEO and managing partner is very well connected politically and he was appointed to the national coal counsel where he communicates regularly with the Department of Energy.
- Cash Flow
When considering the strong double digit cash flow and tax benefits, we project that you would get all of your principle back in less than 2 years.
- Tax Benefits
This investment is eligible for 100% bonus depreciation as well as annual depletion deductions, making this one of the most tax friendly investments we know of. AND the depreciation/losses will offset the tax liability on your Ordinary income (even more favorable then oil and gas with only a fraction of the downside risks)
- The Asset
We like it, this asset class has been in a bear market for a long time and although we are talking about coal, this is not a conventional coal play. We are using Coal, one of America’s most plentiful resources, and we are extracting valuable, highly sought after pharmaceutical grade oil and liquids from it to sell under contract.
- The Market
Texas is a very friendly state to do business in, especially when you are talking about the energy business.
There is a ton of demand for the pharmaceutical grade oil and liquid products and we have fixed price contracts set up with domestic and internationally known companies who buy from us.
Our partners own or control several hundred million tons of coal which not only gives us access to supply but it ensures that we control the price as well. This makes our outcome much more predictable then a typical commodity investment.
The distillation units and the processes are patented and or patent pending, because of our processes we can operate at much lower costs and higher profit margins than the few competitors in the market.
- Return of Capital
When considering cash flow + tax benefits, we are projecting a return of capital in less than 2 years.
- Environmentally Friendly
This is important for a number of reasons. The most obvious is we are taking a historically dirty, toxic energy source and cleaning it up which makes it much easier to garner political support no matter which political party is in office. We are taking one of America’s most plentiful energy sources and extracting oil, gases and liquids all while producing almost zero emmissions into the atmosphere and we have EPA approvals.
We have done a lot of due diligence on this team and this asset class, but we encourage you to do your own due diligence and join us on our next field trip to Texas where you will get to meet the team, see our operation and be among some very sophisticated investors who will ask many questions you may not even thought to ask.
We believe there is no better way to do due diligence then to go see for yourself. Ask the hard questions and get the information you need to make wise investment decisions, that’s why we are encouraging you to join us on our investor field trip.
We already have a great group of investors signed up but we have room for a few more.