While many companies are increasingly integrating green building into their practice in order to foster their competitiveness, a new survey has found that most key players in real estate and construction overestimate the cost of green buildings by up to 300%. Read More →
Los Angeles embarked on one of its most ambitious projects to combat global warming on Monday, becoming the biggest city in the nation to impose “green” building rules that would potentially cut millions of tons of pollution over the next decade.
In a unanimous vote, the City Council passed an ordinance requiring builders of large commercial and residential developments to adopt such measures as planting drought-resistant landscaping and using recycled materials and energy-efficient heating, cooling and lighting.
The law requires new commercial buildings and high-rise residential structures with more than 50,000 square feet of floor space to meet a nationally recognized “Leadership in Energy and Environmental Design” standard, developed by the U.S. Green Building Council, a Washington-based nonprofit. It also would cover major renovations and low-rise developments of 50 units or more.
So far, one state, Connecticut, and 14 cities are requiring private developers to meet green building standards. Source: Los Angeles Times, April 23, 2008
Since 2003 the number of cities with Green Building programs has risen by 418%.
American cities are going green and local leaders are charging ahead with innovative sustainability policies. Buildings currently account for close to one-half of all greenhouse gas emissions, and the design and construction of Green Buildings offers the opportunity to create a more sustainable future.
According to a survey report by the U.S. Conference of Mayors, nine out of ten cities anticipate requiring in the next year that new city buildings be energy efficient, healthy and environmentally sustainable. Forward-looking cities are adopting Green Building Standards to provide for long term operating cost savings, to facilitate positive results for the environment, occupant health, and to practice leadership by example.
Building construction and operation requires vast amounts of resources. A study by the World Watch Institute suggests that these activities account for one-sixth of the world’s fresh water withdrawals, one quarter of its wood harvest, and 40 percent of its material and energy flows. Green Building techniques make more effective use of these resources and reduce the environmental impact of structures over their lifetime.
The American Institute of Architects reports that the U.S. building design, construction, materials, and operation consume more energy than any other part of the economy. U.S. buildings produce as much carbon emission as does the entire economies of Japan, France, and the United Kingdom combined. Additionally, 76% of all power plant generated electricity is used to operate buildings globally.
Capital E findings indicate that average savings of Green Buildings are substantial: 50-90% decrease in waste cost savings; 30-50% decrease in water use savings; 35% decrease in carbon savings; and, a 30% decrease in energy savings.
More and more, Green Building ordinances are requiring that all new construction and building improvements meet certain energy, water, roofing, and lighting efficiency thresholds. For instance, the city of Dallas recently and unanimously voted to implement numerous Green Building regulations: Commercial buildings with less than 50,000 square feet will be required to be 15% more energy efficient and use 20% less water; and, buildings with more than 50,000 square feet will be required to meet strict LEED (Leadership in Energy and Environmental Design) standards. Dallas’ Green Building ordinances most likely will serve as a model for cities across the nation. Read More →
As a value-added service to our accounting firm partners, SourceCorp provides a Monthly LIFO PPI Report. This exclusive report helps CPA firms see where the tax reduction opportunities are for existing and prospective clients.
To defer federal income tax based upon inventory inflation, CPA firms can use the Last-In-First-Out (LIFO) inventory method especially for manufacturing, wholesale/distributor, and retailer clients.
Client Industry Opportunities
Click here to review the March PPI “mined” for inflation, grouped by industry with specific categories at the 4-digit PPI level (NOTE: the PPI categories are published by the Bureau of Labor Statistics and start at a 2-digit industry level and continue down to an 8-digit very specific product category). The most obvious opportunities are in the following industries:
* Chemicals and allied products (paint, pharmaceuticals, plastic resins)
* Rubber and plastic products
* Building materials
* Metal and metal products
* Nonmetallic mineral products (concrete, asphalt)
* Some categories of furniture
* Machinery and equipment
* Transportation equipment
* Fuels and related products
* Various miscellaneous products
For more information, please visit SourceCorp at: SourceCorpTax.com
The Economic Stimulus Act signed by President Bush on February 13, 2008 helps businesses in two ways. It gives companies a 50% bonus deduction on most shorter life property placed in service in 2008. And it increases — to $250,000 from $128,000 in 2008 — the section 179 limit on expenses that small businesses can deduct from annual income, with a total cap of $800,000.
Bonus depreciation allows taxpayers to take a deduction of 50% of all property placed in service with a class life of 20-years or less. The remaining basis for the shorter life property gets depreciated over the applicable MACRS recovery period. For every $1 million of 5-year property, the deduction will be approximately $600,000 in the first year. Read More →
IRS reverses course on dealership LIFO pooling after three decades Revenue Procedure 2008-23 – Vehicle Pool Method
Vehicle Pool Benefits & Opportunities
Confusion over which LIFO pool SUVs, mini-vans, and crossovers should be included in is finally over. With the release of Rev. Proc. 2008-23, auto dealerships may now group all light-duty vehicles (cars, trucks and crossovers) in one LIFO pool.
This new pooling method should help prevent dealerships from liquidating LIFO layers if the recent shift to selling more crossover vehicles and trucks reverses itself and dealerships return to selling more cars. Read More →
SourceCorp has provided our cost segregation services to over a thousand clients ranging from privately held businesses to Fortune 500 companies, across the U.S and in industry segments ranging from automotive and retail to manufacturing and real estate management companies. Our solution addresses each of the specific requirements outlined below.
Cost Segregation Tax Services:
Our engineering-based cost segregation studies provide more precisely segregated property information, giving our clients the information and detailed supporting documentation they need to meet with strict IRS regulations and requirements for audit defense.
Through our engineering-based cost segregation study a wide range of building components, such as electrical installations, plumbing, mechanical components, and finishes will be identified and as applicable, reclassified into shorter-lived asset classes. This adds up to substantial savings to you. Read More →
The Research & Development (R&D) tax credit is one of the most significant domestic tax credits remaining under current tax law – a substantial tool for maximizing a company’s value.
Because the R&D Tax Credit is a resource-intensive and highly specialized process, we have discovered that many companies simply cannot develop and substantiate the necessary R&D documentation. Additionally, another challenge is capturing all R&D opportunities that currently exist.
The SourceCorp Research & Development Tax Services team is comprised of full-time, highly experienced and uniquely qualified R&D professionals. We can help improve your benefits and limit your exposure. Read More →
Section 179D Energy Efficiency Services
You may be eligible for a tax deduction of up to $1.80 per square foot for improving the energy efficiency of your existing commercial buildings or designing high efficiency into new buildings. The Energy Policy Act of 2005 includes a tax deduction for investments in “energy efficient commercial building property” designed to significantly reduce the heating, cooling, water heating, and interior lighting energy cost of new or existing commercial buildings. Read More →
Fort Worth, TX April 28, 2008 – Environmentally sensitive construction practices are now Dallas law, as the City Council unanimously voted to implement numerous “green building” regulations.
This new ordinance requires that all new construction and building improvements placed into service in 2009 and beyond meet certain energy, water, roofing, and lighting efficiency thresholds. For instance, commercial buildings with less than 50,000 square feet will be required to be 15% more energy efficient and use 20% less water. Buildings with more than 50,000 square feet will be required to meet strict LEED (Leadership in Energy and Environmental Design) standards. Dallas’ efforts to mandate green building should serve as a model for other North Texas cities.
The benefits of building green are not just environmental. For business owners and developers, the 2005 Energy Policy Act created Section 179D which allows a significant federal tax deduction for the costs of installing certain energy efficient systems in commercial buildings. The tax deduction offers up to $1.80 per square foot for improving the energy efficiency of existing commercial buildings or designing high efficiency into new buildings. This specifically applies to commercial properties designed to significantly reduce heating, cooling, water heating, and interior lighting energy costs. The deduction also can apply to architects or engineers who design buildings for the City of Dallas. An Energy Efficiency Study can determine the total applicable tax deduction a building owner can qualify for.