John Cummings - National Director of Business Development

How?  The first step is to “data mine” your tax software.  We have found on average when working with CPA firms that it takes about fifteen minutes for us to help generate a report that identifies a firm’s real estate clients that may have conducted energy upgrades to their buildings since 2006 in the fixed asset system.

The results have been nothing but astonishing.  On average, we have found five projects per partner with an average fee of $10,000 to generate the tax deductions that are available.  Once a CPA firm has generated a report from their tax software, we work with them to do a benefit analysis to see what the tax benefits will likely be for their clients. From there, the CPA firm simply contacts the clients with the good news about available tax savings.

The Energy Policy Act allows property owners up to $1.80 per square foot in tax benefits for energy efficient lighting, HVAC systems, roofs, windows or insulation installed in a building since January of 2006.  Property owners aren’t the only clients that benefit.  When the property in question is owned by a government entity, the tax benefits can be enjoyed by the designer of the building (architect, engineer, contractor or construction management firm) to reward them for the energy efficient design.

Timing.  Fortunately, the IRS allows a taxpayer to go back three years to amend tax returns. That means there is still time to capture missed benefits even as far back as 2006, but the clock is ticking and soon 2006 opportunities will expire for good.   Five year net loss carry back rules enhance these benefits so the time is perfect to go through this exercise.

Examples:

Large Hotel in Florida – A certification of over a million square feet of new building placed in service in 2009 resulted in a tax deduction of $1.3 million for the taxpayer.

Architect in Washington – A portfolio of school properties from K through 12 yielded a tax deduction for the 2009 tax year of nearly $500,000.

The above examples are common.  In fact ETS performs several hundred studies every year and generates several million dollars in deductions every month.

The IRS requires that an independent licensed engineering firm certify the energy calculations. ETS serves as the professional engineering firm that is the resource to CPA firms nationwide. For virtually no cost and little investment of your time, ETS can likely identify many opportunities, leverage your client base for additional revenue in the 3rd and 4th quarter of this year and make your firm the area experts in this specialty tax service.

Engineered Tax Services (ETS) is the only qualified professional engineering firm that has its own licensed engineers, LEED Accredited Professionals, and experienced Certified Public Accountants on staff. We marry the science of engineering with the principles of tax and accounting to arrive at financial solutions that result in increased cash flow, minimized tax payments and maximum return on investment. These IRS-sanctioned services include Energy Tax Credits, Energy Policy Act Certifications, Cost Segregation Studies, Historic Tax Credits, Insurance Appraisals, Energy Audits and Renewable Energy Credit services. Our attention to detail is second to none. We meticulously follow IRS guidelines and go beyond the standards required. Our procedures, processes and final work product set the benchmarks that others strive to reach.

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