Third Party Energy Certification Boosts Bottom Line for Contractors and Their Clients


Did you know that contractors who provide energy certification for their clients have the potential to secure more jobs?At Engineered Tax Services (ETS), we partner with contractors nationally to provide independent, third-party certification as required by the IRS for existing projects, while also providing opportunities for new business.

Our experienced team of engineers can help you assess past, current and future projects for tax benefits and guide you and your clients through the certification process. Through a mutually-beneficial relationship with ETS, you will have a competitive edge by earning repeat and new business over contractors who cannot offer their clients the same energy tax benefits certification. Our technical expertise in energy accreditation is unmatched. Our LEED AP designation strengthens and adds depth to the ETS experience and qualifications under EPACT while supporting energy efficiencies under LEED. We are approved for the Energy Efficiency Certification Process so you can start winning more jobs and increase profitability for your business immediately.

Decrease tax liabilities and increase cash flow for energy-efficient improvements and other investments. ETS is a licensed engineering firm that works nationally with real estate developers, owners, tenants and designers (architects, builders, engineers, lighting contractors, HVAC contractors, roofing contractors) to provide the below IRS ordained tax incentives:

Energy Policy Act 179D Tax Deductions
When a new building is constructed or an existing building is renovated since January 1, 2006, the building owner or tenant may be eligible for a Federal Tax Deduction of up to a $1.80 per square foot. The benefit goes to the designer(s) if it is a government- or non-profit-owned building. Most new construction and renovations comply with the deferral requirements. The tax benefits are for new energy-efficient:

  • Lighting
  • HVAC systems
  • Building envelope, including insulation, roof and windows

The IRS requires an independent, third-party engineering firm with the qualified software to undertake the certification. ETS specializes in the certification required by the IRS to take advantage of these tax benefits.

Cost Segregation Studies
ETS assists real estate owners and tenants who have built, purchased or renovated in the last 15 years. There is an opportunity to accelerate an average of 35% of the depreciation of the building and its improvements with our engineering studies. The IRS says, “It is the Time Value of Money.” The cost segregation study depreciates the building by segments into 5, 7, 10 or 15 year property. The results are increased cash flow and NOI.

Abandonment Studies
When you undertake demolition or renovate a building and tear out old lighting and HVAC units and other building parts, these assets are abandoned and as such their book value can be treated as a business deduction, which also increases your cash flow.

Important: consider these tax strategies before any demolition and/or renovation is completed or you may lose this opportunity.

When you re-light a building you create both an opportunity for the Energy Tax Deductions and the Abandonment Study. Excess lighting (eliminated with the new energy-efficient system) can be depreciated faster than the typical 39 years, and so you maximize your tax strategies and save money.

Contact us for a COMPLIMENTARY initial feasibility analysis

To learn more about how ETS is helping CPAs, contractors, real estate investors and many others take advantage of valuable energy-based tax benefits, or to request detailed information, please contact us at 1.800.236.6519.

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