CRG was one of the sponsors of the EnOcean-Alliance booth, where we were on hand to present our expertise in leveraging the tax benefits of §179D, which are available to building owners when building or retrofitting their properties with energy efficient products.  This was a timely topic, as many EnOcean-Alliance members were presenting products that may provide commercial building owners with ways to capitalize on the §179D benefits.  According to Graham Martin, Chairman of EnOcean-Alliance, “The innovative solutions EnOcean-Alliance members displayed this year are designed to reduce energy consumption as well as give users more control and flexibility in managing their lighting requirements, whether new construction or the retrofitting of older buildings for more efficient operations.”

We were impressed with how smoothly the conference ran and the impressive number of attendees, as well as the caliber of our fellow EnOcean-Alliance sponsors.  We applaud the EnOcean-Alliance for their work in developing and promoting self-powered wireless monitoring and control systems for sustainable buildings by formalizing the interoperable wireless standard.

CRG’s white paper explains the guidelines for taking the Energy-Efficient Commercial Building Tax Deduction (26 U.S.C. §179D) included in the Energy Policy Act of 2005.  It further details the specifics of the “allocation pass-through” which provides a tax deduction to the primary designer(s) of government owned buildings that are eligible for the §179D deduction.

CRG has documented potential problems and issues with the allocation pass-through that may require clarification.  CRG Founder and CEO, Marky Moore explains, “There is no formal or recommended process for these negotiations.  In fact, governmental jurisdiction and agencies have applied retrospective and seemingly punitive calculations for payment by the primary designers for authorization for the allocation.”

The white paper provides a breakdown of potential formulas used by government agencies, and makes recommendations for standardizing the participation of government agencies in the allocation pass-through process, which would result in a more reasonable outcome for the primary designer(s) involved.

CRG’s experts provide §179d analysis and financial recommendations for energy-related federal tax incentives, as well as providing the required third-party certification to claim those deductions.  §179d deductions apply to energy efficient improvements made to existing buildings or new construction between January 1, 2006 and December 31, 2013.  CRG has extensive knowledge of IRS approved methods for amending prior returns or filing the required forms with current returns that will allow taxpayers to take advantage of §179d deductions, and will represent the client directly before the IRS if the deduction is ever challenged.

CRG’s team of experts provide clients with up-to-date, specialized services related to green tax incentives, energy tax deductions, IRS compliance regulations and energy strategies including renewables.  Using CRG’s Capital Discovery® process, clients can benefit from successful identification of tax effects that yield immediate and dramatic financial advantage and application of discovered capital to high-value energy projects.

For more information and to download the white paper, please visit www.capitalreviewgroup.com.

Energy Department Announces Funding for Small Business Innovation Research in Energy Efficiency and Renewable Energy

April 09, 2012

The Energy Department today announced up to $9 million available this year to fund approximately 50 small businesses to advance innovative energy efficiency and renewable energy technologies. This initiative will help small businesses with promising ideas that could improve manufacturing processes, boost the efficiency of buildings, reduce reliance on oil, and generate electricity from renewable sources to bring new clean energy solutions to market faster. This effort is part of the Obama Administration’s strategy to drive innovative clean energy technologies into the market and help spur economic growth, diversify the nation’s energy portfolio, and create skilled jobs for American workers.

The Office of Energy Efficiency and Renewable Energy (EERE) is offering this funding through the Department’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which allow federal agencies with large research and development budgets to set aside a fraction of their funding for competitions among small businesses. Small businesses that win awards in these programs keep the rights to any technologies they develop and are encouraged to commercialize them.

Inspired by meetings with hundreds of small businesses around the country, this funding opportunity includes ambitious cost and performance targets to elicit outside-the-box approaches. Used by DOE’s SBIR/STTR programs for the first time, this “broad topic” research solicitation gives small business broadly framed problems to work on and goals to achieve—and gives them the freedom to innovate—instead of providing narrow or prescriptive technological solutions to be improved. It also encourages small businesses with groundbreaking concepts to become part of the EERE programs’ research teams.

The funding opportunity announced today includes 8 broad topics and 30 subtopics in areas including advanced manufacturing, energy-efficient buildings, biomass, hydrogen and fuel cells, solar energy, and wind and water power technologies. The Energy Department will fund selected small businesses with one-year awards of up to $150,000 to explore the feasibility of innovative clean energy concepts. Awardees with successful projects will have the opportunity to compete for more than $1 million in follow on funding.

Detailed application instructions, including eligibility requirements, can be found onEERE’s Funding Opportunity Exchange website under Reference Number DE-FOA-0000715.

Additionally, DOE will present a live webinar on Tuesday, April 10 at 2 p.m. EDT on the application process. Additional details are available on the DOE SBIR home page. Register for the DOE SBIR/STTR mailing list at the bottom of the DOE SBIR home page in order to receive a webinar invitation. On March 19, 2012, a webinar focused on the topics of the funding opportunity was held and material from that webinar, as well as other SBIR information, is also available on the DOE SBIR home page.

The Energy Department’s Office of Energy Efficiency and Renewable Energyaccelerates development and facilitates deployment of energy efficiency and renewable energy technologies and market-based solutions that strengthen U.S. energy security, environmental quality, and economic vitality.

Mr. Duncan is a long-time resident of Washington, where he studied Construction Theory and Management in the Engineering Department at Washington State University in Pullman.  He brings over 20 years of successful sales-focused experience in the IT and Communications industry to CRG, with outstanding performance for companies such as Cray Research, Sun Microsystems and AT&T Mobility.

Mr. Duncan is pleased to put his considerable sales and account management skills to work for CRG.  His keen understanding of the drivers influencing the construction and engineering business and how it is changing the Northwest landscape add valuable insights to the CRG Northwest Territory’s team.

According to CRG founder and CEO, Marky Moore, “Chuck has demonstrated a thorough understanding of CRG’s mission and its relationship to the Pacific Northwest.  His leadership skills and sales acumen, combined with his knowledge of construction, 179D “green” building tax incentives and cost segregation have proven to be a great fit for the CRG team.  We are very excited about Chuck’s contribution to CRG’s growth in the Pacific Northwest.”

Capital Review Group is a leader in providing up-to-date, specialized services related to green tax incentives, energy tax deductions, IRS compliance regulations and energy strategies including renewables.  Using CRG’s Capital Discovery® process, numerous clients have benefitted from successful identification of tax effects that yield immediate and dramatic financial advantage, as well as the application of discovered capital to high-value energy projects.

Ms. Pierce has utilized strategic planning that includes lighting upgrades, high performance HVAC and building envelope technology to help numerous clients reduce energy loads.  Whether replacing, retrofitting or working with new construction, her understanding of holistic systems approach, knowledge of high performance energy systems and methods of transforming existing structures into sustainable high-energy performers is a perfect match for CRG’s focus.

She has completed Gold Level renovation per New Mexico Home Builders Build Green Program, and her home will be featured on the USGBC Green Home Tour for a second year in June.  Ms. Pierce has had an active leadership role on USGBC committees, has been associated with  of International Facilities Managers Association (IFMA), New Mexico Solar Engineers Association (NMSEA), New Mexico Association of Energy Engineers (NMAEE), Green Build, Construction Specifiers Institute (CSI) and Albuquerque Energy Council (AEC).

CRG founder and CEO, Marky Moore, says, “Jann brings the perfect blend of experience, innovation and industry knowledge to our team.  Her depth of knowledge, keen eye and history of client successes in energy efficiency will be instrumental in bringing maximum benefit from 179d tax strategies to CRG’s clients.”

Capital Review Group is a leader in providing up-to-date, specialized services related to green tax incentives, energy tax deductions, IRS compliance regulations and energy strategies including renewables.  Using CRG’s Capital Discovery® process, numerous clients have benefitted from successful identification of tax effects that yield immediate and dramatic financial advantage, as well as the application of discovered capital to high-value energy projects.

Building owners or tenants who have paid for qualifying energy efficient construction or improvement projects may be eligible for a tax deduction of up to $1.80 per square foot if energy costs are reduced by 50% or more.  A partial deduction of $.60 per square foot is available for investments in lighting, heating and cooling, or building envelope that result in a 16 2/3% reduction in energy costs (one third of the 50% requirement).  Under IRS Notice 2006-52, these percentages are effective for property placed into service between January 1, 2006 and December 31, 2008.

IRS Notice 2008-04, the Energy Improvement and Extension Act of 2008, changed the energy savings percentages for the three subsystems as follows: Interior lighting increased from 16 23% to 20%, HVAC increased from 16 2/3% to 20% and building envelope decreased from 16 2/3% to 10%.  The reduction of the building envelope percentage to 10% is clearly beneficial to building owners taking on whole-facility construction or improvement projects, or those looking for alternative ways to receive a partial deduction.

Most recently, IRS Notice 2012-22 provides adjusted guidelines for energy savings percentages required to receive the 179D deduction.  Interior lighting systems now require a 25% reduction in energy costs, while the HVAC percentage has been reduced to 15% and building envelope remains at 10%.  These percentages are effective for property placed into service between the effective date of Notice 2012-22 and December 31, 2013.  IRS guidelines further state that if §179D is extended beyond December 31, 2013, these percentages will be effective (except as otherwise provided in an amendment of §179D or the guidance thereunder) during the period of extension.

Lighting is one of the most common energy efficiency projects undertaken by building owners looking to qualify for the §179D deduction.  Advances in lighting products and systems, as well as building automation systems and improved use of natural lighting such as daylighting, continue to result in greater reductions in energy use for commercial building owners.  As these products and techniques continue to improve, greater savings are being recognized, often exceeding the 25% savings guideline.

To qualify for the §179D deduction it’s important to note that IRS mandated software must be used and a third-party certificate is required for proposed or newly installed: lighting upgrades, HVAC, hot water and building envelope.   The third-party would conduct a physical inspection by a qualified Engineer who performs an Energy Efficiency Study (EES) to calculate, determine and certify the allowable deductions for part or all of the cost of the Energy Efficient Lighting, HVAC, hot water, and building envelope – or any one of these Sub-Systems that have been placed in service after December 31, 2005 and before January 1, 2014. Statements of Certification and allowable deductions are then issued for properties/systems meeting the minimum requirements of ASHRAE Standard 90.1-2001 for interior lighting systems, heating, cooling, and ventilation and hot water systems which reflect the appropriate energy reduction. Statements for Energy Efficient Lighting Systems meeting the requirements of the permanent rule Section 2.03(1)(a) – will be made satisfying a reduction according to the appropriate and applied IRS Notice:  2006-52, 2008-40 or 2012-22.

The taxpayer claimed on its returns that the water-distribution and sanitary sewer systems, the gas lines, and the site electric were eligible for 15-year depreciation; it claimed property in the other categories was eligible for 5-year depreciation. The Commissioner disagreed, reasoning that some of the parts the taxpayer wanted to depreciate quickly can be depreciated only as pieces of a whole building that it must depreciate more slowly over 27.5 years and that some of the parts that the taxpayer wanted to depreciate weren’t depreciable at all.

Depreciation allows for taxpayers take reasonable deductions against income for the exhaustion and wear and tear of property used in a trade or business or held for the production of income.

However, structural elements will never hold a short-lived life, and in this case, the court ruled in favor of the IRS because there was no correlation to “the business” of the residential property.  This case is a great example of why it is so important to work with professionals who understand the subtleties and underlying theory of cost segregation and reclassification of assets, working within the specified IRS guidelines to conservatively –yet still maximize – savings for clients.

Restaurant owners face unique challenges, especially in today’s economy. As consumers tighten their belts and cut back on their entertainment budgets, it’s imperative for restaurants to operate with the most effective business strategies in place. The good news is that restaurant owners can take advantage of targeted tax and energy strategies that can significantly increase operating cash flow and generate a substantial ROI, as well as funding renovations and energy efficiency projects through a significantly lowered tax burden. Understanding the tax opportunities that are currently available will allow you to develop a comprehensive plan for improvements that makes financial sense and allows you to keep your restaurant property up-to-date and maintain a competitive edge.

Read more at Restaurant Facility Business.

Phoenix, AZ – The National Association of State Boards of Accountancy (NASBA) has approved Phoenix-based tax and energy consulting firm, Capital Review Group (CRG) as a “renewed” registered sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors.  NASBA has served as an association dedicated to enhancing the effectiveness of the country’s 55 state boards of accountancy since 1908. As a driving force within the accounting profession, NASBA accomplishes its mission by creating a forum for accounting regulators and practitioners to address issues relevant to the viability of the accounting profession.

NASBA and the National Registry of CPE Sponsors are approved by the IRS as a qualified accrediting organization.  As a member of the National Registry of CPE Sponsors, Capital Review Group is qualified as a continuing education provider for the IRS Registered Tax Return Preparer Program, which provides continuing education to more than 400,000 registered tax return preparers.

CRG founder and CEO, Marky Moore, says, “We are excited to “re” join NASBA as a sponsor of continuing professional education, which will once again allow us to share our specialized tax expertise with tax professionals across the United States.  We look forward to developing valuable course content related to green tax incentives, depreciation, and new abandonment rules as well as our other areas of knowledge.”

Capital Review Group is a leader in providing up-to-date, specialized services related to green tax incentives, energy tax deductions, sustainability, utility and GHG consulting as well as energy strategies including renewables.  Using CRG’s Capital Discovery™, numerous clients have benefitted from successful identification of tax effects that yield immediate and dramatic financial advantage, as well as the application of discovered capital to high-value energy projects. It is this body of information we anticipate sharing with CPA’s, EA’s, accountants, and tax advisors through our renewed association with NASBA.

For more information, please visit www.capitalreviewgroup.com