TITLE: Tax Benefits & Carbon Credits with Eric Shelly

When it comes to saving money on taxes, one of the most important things to remember is taking advantage of tax benefits. Tax benefits come in different forms, but they all serve the one purpose: to cut down taxes. Carbon credits do the same thing. By offsetting your carbon footprint, you can receive tax breaks and other financial incentives.

In this episode, J and Ashley talk with Eric Shelley, CEO and Fund Manager of Freedom Impact Consulting, about tax benefits and carbon credits. Join them as they investigate taxes, energy investments, and carbon capture technology.

Here are some power takeaways from today’s conversation:

• Invest in oil drilling.
• Select your investors carefully.
• Make sure your investments are compatible with financing.
• Consider environmental preservation.
• Monitor the energy policy.

Episode Highlights:

[4:24] Building Investment

Working in real estate didn’t deter Eric from looking for another means to increase his income. He entered the energy sector, which exposed him to oil drilling as a passive investment.

He was introduced to Sita Technology’s equipment that collects oil without drilling. Since it is an oil production project, he took advantage of two benefits as a bonus depreciation in the first year of his passive investment.

[11:32] Managing Profits

Earning money from his passive investment in the energy sector was difficult. It required several annual adjustments to reflect oil output. Thus, his earnings are determined on price fluctuations and revenue streams.

[16:47] Selecting Investors

First, determine whether the investment meets your criteria. Second, confirm that the investor is qualified. Third, determine if the investor has prior expertise.

[18:25] Overcoming Risks

Some of the major issues that you might face or have faced as a passive investor in the energy sector include:

• Huge energy demand in the next 5 to 6 years
• Lone company with patented equipment for oil collection

[24:46] Considering Externalities

Watch energy policy. The government is serious about going green while increasing energy utilization today. How they respond to the policy may influence how investors respond to them.

Notable Quotes from the Episode:

[1:39] “I realized that in my early 50s, I was going to have to be responsible for my retirement. So I decided to learn about passive investing.”

[22:46] “One of the things that is created by [carbon capture fund] is that we are giving people a great tax benefit in year one.”

[27:14] “If you get good financing, and then fit the asset to it, … cash flow will cover the investment. And it’ll do what you intended it to do.”

Resources Mentioned:

Chevron

Exxon

Sita Technology

Freedom Impact Consulting

The Passive Investing Show