Specialists in Managing Water and Energy Efficiency Projects and Programs
CORPORATE TAX SAVINGS
Energy Efficiency Tax Incentives, R & D Tax Credits and Cost Segregation Studies
Many companies are not taking advantage of the significant cost savings offered by these federal tax reduction opportunities which require a combination of specialized accounting and engineering expertise to implement. Cost Containment Engineering, Inc and our accounting affiliates can help you to understand whether your company qualifies for any of these tax credits and deductions, and assist in implementing the appropriate tax reduction strategies.
Call our office at 210-722-7278 to discuss how these tax savings could help you business, or read below for further details.
ENERGY TAX DEDUCTIONS
Created as a part of the Energy Policy Act of 2005 enacted by the U.S. Congress to encourage energy efficiency improvements and bring about less dependance on foreign oil imports, these tax deductions will reimburse businesses for installation of energy efficiency improvements in their facilities (both new and older buildings). The deductions are available to essentially all types of facilities, including commercial office space, warehouse, manufacturing, and retail buildings.
If your company has spent (or plans to spend) $100,000 or more installing high efficiency air conditioning systems and/or lighting systems, you should investigate these incentives. It could be worth up to $1.80 per square foot in tax deductions. For example, a lighting retrofit of a 100,000 square foot building (done to the IRS specifications) would deliver a $60,000 tax deduction. Upgrading the efficiency of the HVAC system in an older building would also be eligible for these tax incentives. Together with our CPA affiliate, we can provide the required certification by an independent licensed engineer and assistance with completion of the appropriate tax forms.
For additional information on Energy Tax Credits, please contact David Frashier at 210-722-7278 with a brief description of your building and energy efficiency improvements to better understand your potential tax savings.
COST SEGREGATION STUDIES
This tax saving measure involves reclassification of assets (certain components of your commercial buildings) from real property to personal property and increasing the depreciation rate for those assets. Typically, 20% to 30% of a property's value can be reclassified for rapid depreciation. Benefits of Cost Segregation include:
> Accelerated asset depreciation deductions > Potential reduction of annual property taxes > Property insurance reductions > Increased cash flow and profitability > Immediate write-off of personal property value prior to a building demolition
For additional information, please contact David Goodrich at 210-452-0193 to discuss your specific facilities and explore the potential tax benefits of cost segregation studies.
RESEARCH and DEVELOPMENT TAX CREDITS Most companies are doing some form of R&D, for example a manufacturing company is typically working to improve it's manufacturing processes and developing new products or variations of existing products. However, many companies are incurring these costs without taking full advantage of the tax savings availble for those efforts.
For additional Information, Please contact David Goodrich at 210-452-0193 with a brief description of your R&D activities to discuss your eligiblity for these tax savings which have the potential to recover a significant portion of your R&D costs.