You might want to retrofit your existing building with energy efficient lighting, HVAC or upgrades to the building envelope in order to save money on energy costs, but youve first got to come up with the funding for those improvements. Do you provide the required capital or continue to face increased operating costs? The ROI on new, energy-efficient systems may be longer, but the equipment will perform more reliably while providing better working conditions and lowering energy costs along the way. Most business owners will assume that funding for energy efficient upgrades has to come from dipping into their equity in the facility, or from an outside funding source such as a bank loan.
Fortunately, there are alternative strategies that can be put into place to pay for energy efficiency projects by significantly lowering your tax burden. A cost segregation analysis identifies and reclassifies personal property assets to shorten the depreciation time for taxation purposes, which reduces current income tax obligations. Personal property assets include a buildings non-structural elements, exterior land improvements and indirect construction costs. Depreciation expense is accelerated and tax payments are decreased when an assets life is shortened, which frees up cash for investment in energy efficiency projects.
The benefits of a cost segregation study are retroactive, including buildings that have been purchased, constructed, expanded or remodeled since 1987. This allows taxpayers to recapture previously unrecognized depreciation, which increases cash flow in the current year.
Another tax benefit that can be applied to energy efficient construction or improvements is found in section 179D of the Energy Policy Act of 2005. 179D includes full and partial tax deductions for investments in energy efficient commercial buildings that are designed to increase the efficiency of energy-consuming functions. The deduction available is up to $.60 per square foot for lighting, HVAC and building envelope, creating potential for $1.80 per square foot if all three components qualify. These deductions are applicable to buildings that were either built or retrofitted after December 31, 2005. In order to qualify for the deduction, the taxpayer must receive a third party energy efficiency certification.
In addition, the issuance of Revenue Procedure 2011-14 will allow some taxpayers to claim the 179D deduction all the way back to January 1, 2006 without filing one single amended income tax return. Taxpayers who wish to take the deduction without amending any returns will file a Form 3115 (Application for Change in Accounting Method) and will get to take the entire catch up deduction on the return that is being filed. This means that a taxpayer could potentially claim deductions from 2006-2010 (or 2011) all on one return and significantly reduce their tax burden, if not eliminate it altogether, which goes a long way toward funding energy efficiency.
Instead of looking to outside sources or reducing your valuable equity to fund energy efficiency, look to your own building for the answers. Putting the right strategy into place can result in surprisingly significant savings and painless way to pay for your project.
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Tips for Home Improvements in Long Island: Choosing Kitchen Flooring
Whether your house is in the suburban reaches of Long Island or deep in the urban jungle of Manhattan, youll surely agree that your kitchen is one of the busiest places at home, so it only pays to equip it with the most durable materials possible. The next time youre looking to do home improvements in Long Island, consider renovating your kitchen floor with one of these hardy flooring materials:
Energy efficient replacement windows are an excellent way to give your home a green perspective. Inefficient windows can leave your home overheated in the summertime, and they will be cold and drafty in the winter. Energy efficient windows do more than help you regulate the temperature in your home; modern technology and designs also improve the decor and architecture of your home.
Cost, value, and green window replacement
There is so much written about “green” technology that it can be confusing for homeowners to decipher all of the “green” remodeling information that is available. Regardless of energy efficiency, the first question most homeowners want answered is how much the new replacement windows are going to cost.
With so many options for styles, colors, types of windows and levels of energy efficiency, the task of choosing the best windows may seem confusing. It is important to remember that even the most basic models of energy efficient replacement windows are tremendously effective, so let your budget be your primary consideration and work from there.
Vinyl siding is the choice of many homeowners and builders due to its durability, long life, and ease of installation. Unlike painted siding, it does not require repainting every four to five years, making it an essentially maintenance-free and economical choice over a long term. Simple cleaning or power washing on a yearly basis is all that is needed to keep this siding looking like new for many years.
Vinyl siding has improved greatly from its beginnings, resisting fading and warping like the earlier products were known to do. It is also now available in a vast range of colors and patterns, including wood, stone, and metal faux veneers that appear identical to these real materials from even short distances when expertly installed. For those who love the look of stone or cedar but not the expensive price tags, vinyl siding can offer the ideal solution.
One of the drawbacks of standard vinyl siding is that it doesn’t offer additional insulation. This issue has been addressed with the introduction of insulated siding that is now available from a number of manufacturers. It offers all of the advantages of other vinyl siding, plus many more.
Henredon is a popular American furniture market which is famous for manufacturing and designing fine quality furniture at cheap and affordable prices. The huge collection of Henredon furniture consist of Henredon cabinets, Henredon wardrobes, Henredon china cabinets , Henredon tables and Henredon sofa and chairs as well. Henredon furniture is beautifully crafted and it is just awesome for every type of interior decoration theme and style. The trademark of Henredon furniture is high quality and upholstery designs that are why it is the top sough after furniture brand in USA. Each item of Henredon furniture is carefully crafted with the finest wood of veneer by experienced crafts men that is why each item of Henredon furniture looks quiet unique in its style and appearance. Henredon china cabinets are highly appreciated in American furniture market.
A common Henredon china cabinet consists of beveled glass and it has inside shelves and outside panes. It is quiet easy to open and close it and it is just perfect for your dining room or a kitchen. Some Henredon china cabinets look like maple cabinets as well. You can store plates, glasses, kitchen towels and kitchen bowls easily in them. Henredon Furniture Company was actually founded by four men in Morganton in 1945. Their introductory addition consists of only three chests but this company has made huge progress after that and today there are huge variety of Henredon products available in furniture market.
The designs are unique and you will still find lots of hand work involved in creating each and every Henredon item. If you want to buy classic but quality furniture then you should definitely consider Henredon furniture.