Sustainable Engineering & Design (SED)
has partnered with a professionally licensed tax engineering firm that focuses on energy tax certification, cost segregation, energy audits, and related building appraisal reports.
Who can benefit from these, possibly overlooked, tax benefits?
Increase your cash flow by discovering under utilized benefits readily available by the IRS.
- Property Owners
- Real Estate Attorneys and Agents
- Energy and Lighting Consultants
- HVAC Consultants
- Roof and Insulation Contractors
- Specialty Contractors
- Interior Designers
- Non-For-Profit Organizations
- Public Entities
Studies indicate that 83% of real estate owners miss out
on energy deductions available on qualified properties. SED offers a measurable dynamic to increase your Return On Investment (ROI) and improve efficiencies whether through LEED or through additional creative energy efficiencies - all with the goal of reducing operating expenses and obtaining additional tax deductions or credits.
As real estate owners, you may qualify for a tax benefit of up to $1.80 per square feet for improving the energy efficiency of existing buildings or designing high efficienct new buildings (as stated in the 2005 Energy Policy Act, extended through December 31, 2013). Our partnered tax engineering firm will help assess your eligibility, explain IRS guidelines, and guide real estate owners through the certification process.
In sum, you can go back three to ten years and carry forward the energy tax benefit for 15 years. Refunds may be due to you!
Your CPA may not be aware of these tax benefits!
- Cost Segregation
- A cost segregation is a federal income tax tool that increases your cash flow, in the form of a deferral, by utilizing shorter recovery periods to accelerate the return on capital from your investment in property.
Benefit of Cost Segregation Is Cash Flow Today!
- A taxpayer purchases (or constructs) a strip mall for $4 million (land excluded).
- Without a cost segregation study, the taxpayer depreciates $4,000,000 as a 39-year asset (straight-line, HY convention).
- Historical Tax Credits
- The federal tax law offers effective incentives to taxpayers who contribute to the preservation of our nation's old and historic buildings. By rehabilitating or investing in the rehabilitation of eligible buildings, you can take advantage of one or two tax credits.
- Green by Design - Energy Tax Benefits flow through Government Entities to Architects, Engineers, Contractors, Environmental Consultants or Energy Services Provider
- Designers of energy-efficient properties are eligible for a Federal Tax Benefit of up to $1.80 per square foot for the design of energy-efficient public buildings placed into service after January 1, 2006!
- Environmental Protection Agency Tax Deductions
- Energy certification calculates the tax deduction achieved from the installation of energy - efficient assets. The deduction ranges between $0.60/ft and $1.80/ft. We offer a measurable dynamic to increase your return on investment and improve efficiencies.
- Energy Audits
- Forensic energy audit includes a detailed report with extensive and precise break downs of your current annual energy use and costs. You will understand your building's energy efficiencies (or waste), the alternatives to reduce energy use, and operating costs.
- Insurance Cost Reductions
- An added benefit of the Cost Segregation Study is that it contains DEIRA (Detailed Engineering Based Replacement Appraisal) information that you may also use with your property insurance company to analyze appropriate coverage amounts. This cost segregation - DEIRA combined strategy can translate to major tax savings, as well as reduced insurance premiums.
- Federal Energy Tax Deductions
- Tax returns may be amended going back three to ten consecutive tax years to review building lighting, HVAC, building envelope systems for Federal Tax Deduction qualification.
Over $1.3M Energy Tax Deduction
Full Service Hotel and Resort in Central Florida
Request your Cost Segregation today or Contact Us to schedule an appointment.
What are the requirements?
Must reduce total annual energy and power costs with respect to the interior lighting, systems, heating, cooling, ventilation and hot water systems by 50%, but partial deductions are allowed; Energy simulation is required to justify the deduction; Inspection and testing must be completed by a qualified engineer or contractor registered in the jurisdiction.
How much is the deduction?
- Maximum deduction - $1.80 per square foot = 50% reduction in total annual energy and power costs (compared to a reference building that meets the minimum requirements of ASHRAE Standard 90.1-2001); not to exceed the amount equal to the cost of energy efficient commercial building property placed in service during the taxable year.
- Partial deduction - %.60 per square foot = 16 2/3% reduction for building envelope, HVAC and service hot water systems and lighting.
- Partial deduction (interim lighting) - $.30 - $.60 per square foot = 25 - 40% reduction in lighting power density (50% in the case of warehouses)
Who qualifies for the deduction?
- Commercial buildings (any size)
- Apartments, four or more stories, for lease
- Commercial energy renovations
What is the time frame for eligibility?
- Building owner at the time of building improvements
- Public buildings - the owner may allocate the deduction to the designer (architect, engineer, contractor, environmental consultant or energy services provider) for the taxable year that includes the date on which the property is placed in service
Units must be completed or renovated after December 31, 2005 but before January 1, 2014
What is needed from the builder?
Current full set of architectural plans that includes all specifications.
- Energy compliance documents for lighting, HVAC and envelope (Title 24 or IECC)
- EnergyPro File - computer file used to generate T-24 documentation
- A contact person and phone number