If you or your clients, are on extension there is still time to take advantage of some rewarding tax-reducing opportunities.
Cost Segregation and Tangible Property Regulation Compliance
In addition to accelerated depreciation, a significant array of tax strategies are available to property owners. Bonus depreciation on new construction or improvements, and various Qualified Improvement activities offer opportunities to harness the hidden tax benefits within your buildings.
The Tangible Property Regulations (TPRs) provide numerous “safe harbors” for expensing certain expenditures. In the case that an incoming replacement asset has to be capitalized, the remaining depreciable basis of the replaced asset can be written off – but only in the current tax year in which it was removed. This is truly a “use it or lose it” benefit.
Research & Development Tax Credit
While the R&D tax credit is one of the most lucrative tax credits offered by the Federal government, it is also the least utilized – with less than 10% of all eligible companies applying for it. On top of the Federal credit, more than 70% of the states also offer tax incentives in the form of credits for companies creating new or improved products or processes. Now, with the addition of the AMT and Payroll tax liability offset, more companies than ever will be eligible to take advantage of this credit.
The R&D tax credit offers businesses across all industries that create a new or improved product, process, or technique, the opportunity to offset current and future year tax liability. Bedford’s R&D team assists companies with the identification and maximization their research and development tax credit opportunities through a complete R&D tax credit study, which includes a complimentary feasibility analysis, a review of documentation, employee interviews, calculation & preparation of tax forms, and an IRS audit defense deliverable.
Using a unique team approach and in-house expertise, Bedford Energy Consulting has helped many companies qualify for tax and rebate incentives to fund energy upgrades. While EPACT 179D has not yet been extended past the 2016 Tax Year, taxpayers may utilize a “look-back” strategy for energy efficient construction or retrofits done in the past. Our energy services group is growing, and in addition to EPACT 179D we now offer the following consulting services:
• Compliance to secure utility rebates
• Scoring commercial buildings for Energy Star rating and certification
• Consultation to owners and their professional advisors to educate and assist in an energy efficient, tax-centric design to help reduce operating costs and validate product performance
It begins with a tax-centric design and a team approach to maximize the benefits and increase cash flow for funding energy projects.