A client with 3 million square feet of properties get $2.9 million in tax deductions all at ZERO cost and NO worries about their current corporate needs for the tax deduction.

ETS has developed  unique partnerships to help our clients reduce their tax liability, we combine three sets of services with a turnkey opportunity for our clients.  As the following case example demonstrates.

A client of ETS’s, who undertook the traditional Cost Segregation service, now has an appetite for tax deductions.

ETS works with REXEL to introduce clients to the concept of having ALL of their lighting upgrades.  REXEL’s lighting group can provide these services nationwide.   REXEL completes the survey of the properties and Identifies the most likely to be good candidates for re-lighting.   Additionally, there is no charge to the client for these services.

Next Acculease set up financing, where the cost of the loan/lease is less than the energy savings provided by the REXEL relighting project.  Where available, the client uses on-bill-financing for the project through the local utility.  In all the cases we have examined Acculease’s rates beat the on-bill-financing.  Additionally ETS’s cost for the EPAct certification can be included in the lease, meaning absolutely ZERO cost to the property owner.

Lastly, ETS provides the EPAct certification and the Abandonment .  The abandonment provided $0.50 in tax deductions, the EPAct an additional $0.60.

The EPAct tax deductions look a LOT like depreciation, except that they may be passed down to the owner of the company AND their tax deductions are NOT subject to AMT.   An added benefit for the property owner/tax payer to be sure.

Additionally the value of the properties have  increased.  The additional cash flow, when the lease is paid off, provide an dramatic enhancement to the property.

A 250,000 property can drop their energy costs by $60,0000 a year.  Meaning an additional $5,000 a month in income and energy costs are just going up.   These benefits will only increase over time.

This program only works, because ETS has designated partners who are proficient in providing these services, you could do it piece meal, but it is a lot harder. ETS brings the whole package of services to your table.

The table below shows the tax benefits.

If you were to look at your portfolio of property owners, or if you are a property owner,  there are millions of dollars in tax benefits available, at no cost to you or the property owner.  Additionally you enhance the value of the portfolio,  reduce both the  need to import  foreign oil and  reduce greenhouse gas emissions.  You can do all of this at zero cost to you or your client.

This article was written by Don McDougall,

National Director – Corporate Accounts

Engineered Tax Services

Cell: 213.280.2266
Email: dmcdougall@engineeredtaxservices.com

http://www.linkedin.com/pub/don-mcdougall/4/844/411

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