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| To find additonal information related to Industry News regarding our services, please find the links below to websites with additional resources: |
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Cost Segregation Audit Technique Guidelines as published by the IRS
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Energy Policy Act of 2005
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| IRS Updates on Research & Development Tax Credits |
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ETS recently completed a cost segregation study for a large business park near Seattle, Washington.
We were able to reclassify over 28% of the real property which resulted in nearly a $2,000,000 of tax benefits.
Albert Einstein is quoted as saying: "Compounded interest is the 8th Wonder of the World. It can work for you, or against you. When you retain it, it works for you.
When you borrow it, it works against you!" |
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Engineered Tax Services. , Inc.
319 Clematis Street, Suite 603
West Palm Beach, FL 33401
Telephone: 800.236.6519
Office: 561.253.6640
Fax: 561.253.1039 |
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Engineered Tax Services provides energy advisory services to assist real estate owners lower their monthly utility consumption while getting the advantage of the new federal tax credits.
Our services range from a peripheral inspection to a fully detailed inspection audit.
A walk-through energy audit is a visual inspection of a facility made to determine operation and maintenance energy saving opportunities, as well as gather information to determine the need for a more detailed audit. The walk-through audit shall is arranged so that ETS can see the major operational and equipment features of the facility. A walk-through audit usually begins with a review of a building's energy consumption over a prior period, usually the previous year. It is best for this information to be prepared and reviewed prior to the audit.
During a walk through energy audit, two types of information are recorded. First, ETS identifies and records what equipment and systems are installed, how the various equipment and systems interoperate and consume energy. Secondly, ETS determines and records the evident conditions of the installed equipment and systems and, as appropriate, the energy conservation opportunities suggested by virtue of these existing conditions.
Walk-through energy audits are designed to identify only those deficiencies that are most obvious. Most substantial energy savings will be identified only through the more rigorous investigation of the comprehensive energy audit. Accordingly, walk-through audits are only appropriate as a means to prioritize facilities for conducting comprehensive audits. Typical concerns which may be covered by a walk-through audit include reduction of infiltration/ex-filtration; quality of HVAC equipment O&M, including controls; lighting system energy efficiency opportunities; ventilation system operation, control, and opportunities for improvement; and tenant use practices.
A comprehensive facility energy audit is defined as a survey of a building or facility that provides sufficiently detailed information to allow an agency to enter into energy or water-savings performance contracts or to invite inspection and bids by private upgrade specialists for energy or water efficiency investments. The comprehensive facility audit shall include information such as the following: |
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a. The type, size, energy use, and performance of the major energy using systems and their interaction with the building envelope, the climate and weather influences, usage patterns, and related environmental concerns.
b. Appropriate energy and water conservation maintenance and operating procedures.
c. Recommendations for the acquisition and installation of energy conservation measures, including solar and other renewable energy and water conservation measures.
d. A strategy to implement the recommendations. |
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Life-cycle cost analysis is an integral part of the comprehensive energy audit. Life-cycle cost analysis takes into account initial cost of the energy savings upgrade, energy costs and savings, operation and maintenance costs, component replacement costs, and other factors that will affect cost over the entire life of the project. This will provide the necessary information to make a final decision on implementation of an energy savings measure.
The life-cycle cost analysis is done by computer modeling of the facility to determine energy and demand savings, compare the energy and demand usage of the existing system with the proposed energy savings upgrade.
ETS will then prepare financial analysis that compares the cost of maintaining the existing system and the energy costs associated with the existing system to the cost of upgrading and maintaining the new system and the energy costs associated with the new system. The life-cycle cost analysis determines the net present value, savings to investment ratio, and internal rate of return of the investment including the energy tax credit implications.
Furthermore, Engineered Tax Services will provide the Energy Tax Certificate per the Energy Policy Act of 2005. This certification will calculate the tax deduction achieved from the installation of energy efficient assets. The 179D deduction can range between $.60 per sq. ft. up to $1.80 per sq. ft. These special tax deductions will be calculated prior to installation to give you an idea of the overall investment based on recent Congress legislation. |
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