Financial Incentives
LCE provides financial services for building owners nationwide to reduce their financial burden and increase cash flow. We are experts in the real estate tax code and perform Cost Segregation Studies, Section 179D, Repair Regulation Studies, R & D Tax Credits, and find local utility rebates for our clients. We can work directly with your CPA/Accountant to get this done. We offer free analysis of estimated savings and service fee for all financial incentive offerings.
Cost Segregation
Cost Segregation is the method of re-classifying components and improvements of your building from real property to personal property. This process allows the assets to be depreciated on a 5,7, or 15 year schedule instead of the traditional 27.5 or 39-year depreciation schedule of real property. So, your current taxable income will be greatly reduced and your cash flow will increase.
LCE engineers have the expertise in the tax laws, cases, and ruling on Cost Segregation, along with real estate development and construction experience to maximize your savings. We use an engineered base approach so your CPA may not do this for you, but can apply the results to your tax filings. Our company will work with your advisors to help you take advantage of this tax saving solution.
Whether you have purchased a new property, owned a property for years, or made recent improvements, LCE will perform a Cost Segregation Study for you that includes Partial Asset Disposition and identifying Qualified Improvement Property that qualifies for Bonus Depreciation.
LCE provides free estimates for any property that will give you estimated tax savings and project cost. If you’d like to receive a free analysis, please contact us with the below information:
-Property Type and Address
-Purchase Price
-Purchase Date
-Improvement Cost & Date (If Applicable)
Section 179D
The Energy Efficient Commercial Buildings Tax Deduction, more commonly known as the 179D deduction, was enacted as a part of the Energy Policy Act of 2005. This deduction was made available to building owners and designers to incentivize energy efficient building designs and renovations. To determine eligibility, the project has to have been placed in service or renovated from January 1, 2006 or later. If the project qualifies, the tax deduction can be put on an original return, no amending.
Claiming the deduction isn’t difficult, but providing the necessary information required by the IRS is.
LCE offers this services nationwide and will provide a free analysis to get the conversation started.
What are the Deductions?
There are three building systems that can be modeled to determine if they exceed the corresponding ASHRAE Standards: lighting systems, HVAC and hot water systems, and building envelopes. The total max deduction can yield up to $1.80-$1.88 per square foot.
What Buildings Qualify?
A common misconception is that buildings have to be LEED certified to qualify for the deduction. To qualify for the deduction, buildings have to exceed the ASHRAE Standards set by the Code. Commercial buildings, multi-family residential, industrial buildings, and parking garages are examples of buildings that may qualify.
-Commercial Buildings
-Multi-Family Residential Buildings
-Industrial Buildings
-Parking Garages
R & D Credits
The Research and Development (R&D) Tax Credit was enacted in 1981 and has been renewed several times throughout the years until 2016 when it was made permanent. The R&D credit allows companies, large and small, to claim a dollar for dollar reduction of tax liability for qualifying research expenditures. The research expenditures are identified by analyzing the company’s potential qualifying wages, supply and contractor costs through the course of an R&D project. Taxpayers can claim the credits back three years and carry forward unused credits for twenty years. Additionally, small businesses with less than 50 million in Gross Receipts can offset Alternative Minimum Tax (AMT) with R&D tax credits.
What Industries Qualify?
-Manufacturing
-Food/Beverage
-Tech/Software
-Energy
-Medical
-Agriculture
-Architecture
-Engineering
-Construction
THE STUDY PROCESS
Our process is divided into three phases that include Assessment, Implementation and Reporting.
Assessment
During the Assessment Phase, we gather high level financial information and evaluate your com-pany's R&D activities and potential costs to provide an estimate of tax credits. If the client decides not to move forward with the study, we terminate our agreement at no cost to your company.
Implementation
During the Implementation Phase, we conduct in-depth interviews with technical personnel to qualify individual projects and employee activities spent working on projects to arrive at a final tax credit calcula-tion.
Reporting
During the Reporting Phase, we document your company's R&D activities and employee involve-ment in a final bound report, including applicable statutory and regulatory information regarding your study.
Local Utility Rebates
When you perform energy improvements on your property, there are local utility rebates available. By working with LCE on energy projects, we will find the applicable local utility rebates for you. Saving you time, money, and energy. Local Utility rebates vary throughout the Country, but our team has the knowledge to identify and apply your specific local utility rebates for you.