Maximize Your Tax Incentives
Your Trusted Partner for Real Estate Investors & CPA’s
Cost Segregation Services
Cost Segregation is a process of identifying real-estate property or building components that will generate accelerated depreciation deductions and federal tax deferrals.
By identifying your property components and reclassifying those assets, you can generate an immediate tax depreciation deduction in the current tax year, tax deferrals, significant cash flow benefits from real estate operations, and an opportunity to redeem depreciation deductions in preceding years.
179D Tax Deduction
Energy-Efficient Commercial Buildings Deduction
Section 179D (Energy-Efficient Commercial Buildings Deduction) was extended through December 31, 2020 by the Tax Extender and Disaster Relief Act of 2019. The deduction grants commercial builders or building owners to claim a tax deduction for up to $1.80 per square foot for their energy-efficient structure or buildings during the open tax years
Who Can Qualify for the 179D Tax Deduction?
Commercial Building Owners
Tenants with HVAC Assets
Government Building Engineers
What Buildings Can Qualify?
Commercial Building Owners
Retail Buildings
Industrial Buildings
Warehouses
Apartment Buildings - Four Stories or Greater
Government-Owned Buildings
About the 45L Tax Credit
Section 45L or Energy Efficient Home Tax Credit is a tax provision that allows qualifying contractors to claim up to $2000 credit for meeting energy-efficient standards from their systems and installations operated around August 5, 2005, and December 31, 2020.
45L Tax Credit Information
The Tax Increase Prevention Act of 2014 allows the incentive to be claimed retroactively for all residential developments built within the last three years and any unused credit can be carried forward for up to 20 years. There is no maximum number of units when claiming for the credit as long as your property meets the qualified energy-efficiency standards.
The incentive provides a substantial financial advantage for developers and property owners looking to offset costs while promoting energy efficiency. By retroactively claiming the credit for projects completed within the last three years, businesses can recover significant expenses and reinvest those savings into future developments. Additionally, with the ability to carry forward unused credits for up to 20 years, property owners can strategically plan their tax benefits to maximize long-term financial gains.
This provision is particularly valuable for large-scale residential projects where energy-efficient upgrades can lead to substantial tax savings. Developers who incorporate energy-saving designs and technologies into their properties not only benefit from immediate cost reductions but also position their investments for greater sustainability and market appeal. By leveraging this tax credit, businesses can enhance profitability while contributing to the broader goal of reducing environmental impact.
R&D Tax Incentives and the Four Part Test
R&D Tax Incentives are available for businesses that have qualified research and development practices that are operating either globally, at a federal, and multi-state level. Presently, there are over a hundred countries and over forty states offering these valuable incentives. It remains one of the excellent sources for companies to tremendously cut down their tax liability.
To qualify for the R&D tax credit, the research and development efforts of your business must be determined to meet the following criteria established by the IRS:
Elimination of Uncertainty
The business activity performed must prove that it made attempts to eliminate uncertainty in regards to the method or design of the development or enhancement of a product or process.
Process of Experimentation
The business activity must demonstrate an evaluative process that can perform an identification and evaluation method with several alternative ways to get the desired result. This may involve a systematic trial and error testing, simulation, modeling, and other processes.
Qualified Purpose
The purpose of the activity must be to create or design new and improved products or processes that result in improved quality, functionality, reliability and performance.
Technological in Nature
The experimentation process of the business must rely on the principles of hard sciences such as engineering, biology, chemistry, physics, or computer science.
The Qualified Research Expenses (QREs)
Aside from the activities that qualify for the R&D tax credit, the expenses incurred by performing these activities also make you eligible towards the credit when it includes the following types:
Wages that are paid to employees for conducting, supervising, or supporting the qualified research.
Supplies or any tangible property (except for land, land improvements, and properties that are likely to depreciate) that are used and consumed in the course of research and development.
Contract Research Expenses that are paid to third parties who operate QRA’s (Qualified Research Activities) on behalf of the taxpayer despite the prevailing result of the activity.
We Are Nationwide Trusted Advisors to CPA's, Businesses, & Real Estate Investors.
Optimize your tax benefits with Specialty Tax Advisors and propel your profitability!