1 / 25

Energy Tax Savers’ EPAct and Tax Incentives Presentation

Energy Tax Savers’ EPAct and Tax Incentives Presentation. Energy Tax Savers, Inc. Jacob Goldman Jacob.Goldman@energytaxsavers.com. Presentation Index. EPAct Pre-Solar Planning Alternative Energy Bonus Depreciation. Energy Policy Act of 2005 (EPAct) . Extended through 12/31/13

huey
Télécharger la présentation

Energy Tax Savers’ EPAct and Tax Incentives Presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Energy Tax Savers’EPAct and Tax Incentives Presentation Energy Tax Savers, Inc. Jacob Goldman Jacob.Goldman@energytaxsavers.com

  2. Presentation Index • EPAct • Pre-Solar Planning • Alternative Energy • Bonus Depreciation jacob.goldman@energytaxsavers.com

  3. Energy Policy Act of 2005 (EPAct) • Extended through 12/31/13 • Benefits available from 1/1/06 thru 12/31/13 • Incentivized areas: • Lighting • HVAC • Building envelope • Available for New Construction and Existing Buildings • Also available for tenant owned lease-hold improvements • Benefit available for Primary Designers on Government Projects jacob.goldman@energytaxsavers.com

  4. Who’s using EPAct? jacob.goldman@energytaxsavers.com

  5. What’s it Worth? *Note – with government buildings, the benefit goes to the primary designer jacob.goldman@energytaxsavers.com

  6. How do you Qualify? • Mechanics • Deductions based on improvements over ASHRAE 90.1 2001 • Energy efficient improvements must be depreciable assets • Converts 39 year depreciation to current deduction • Available for installations completed between 1/1/06 & 12/31/13 • Can begin in prior years • Deduction amounts: • Lesser of total cost or: • $1.80/sq.ft. Whole Building • $0.60/sq.ft. Individual Systems • Lighting • HVAC • Building Envelope jacob.goldman@energytaxsavers.com ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) HVAC (Heating, Ventilation & Air Conditioning)

  7. 8 Ways to Capture Tax Deduction 7 • (1)Whole Building ($1.80/ft2) • 50% Energy Cost Reduction below standard • Permanent Rules partial deduction ($0.60/ft2) • (8)Interim Lighting Rules ($0.30/ft2-$0.60/ft2) • 25% to 40% prescribed Light Power Density (LPD) reduction below standard jacob.goldman@energytaxsavers.com

  8. Where are the Benefits • Lighting, Lighting, Lighting • Lighting Controls • Specific Types of HVAC • Geothermal • Thermal Storage • Central Chiller plants with small buildings(<150,000sq.ft.) in Campus • LEED Buildings jacob.goldman@energytaxsavers.com

  9. Interim Lighting Rules • Meet W/ft2 targets • Add’l Requirements • Bilevel Switching • Meet ASHRAE 90.1 Requirements • Meet IESNA minimum light levels jacob.goldman@energytaxsavers.com LPD (Light Power Density)

  10. Definition of Bi-Level Switching • A room, as defined by floor to ceiling walls, must have at least two light levels other than on and off. • This can be met in a number of different ways: • Dimming ballasts create an infinite number of light levels • 50% of lights in a room on one switch, 50% on another or 60/40, 70/30… • Occupancy controls on separate lighting circuits • Even lights on at least 2 separate circuit breakers would technically qualify • Exceptions • Storerooms, Restrooms, Lobbies, Hotel & Motel Guestrooms, and Garages jacob.goldman@energytaxsavers.com

  11. Benefiting from ASHRAE 2004 & 2003 IECC jacob.goldman@energytaxsavers.com

  12. Federal Building Energy Code Standards • As of 12/31/2010 all states are required to have codes at ASHRAE 2004 or better • This impacts new construction and major retrofits • This is a big change for states at no or older energy codes • The states must certify they are at this level or justify why they are not jacob.goldman@energytaxsavers.com

  13. Major Lighting Bans ¹ Residential is excluded from the ban, provided power factor is less than 0.90. • ² Permissible replacements for incandescents include: • High efficiency incandescents • CFLs • LEDs 13 jacob.goldman@energytaxsavers.com

  14. Common Lighting Retrofits Industrial/Manufacturing/Warehouse T5 HiBay Fluorescent 234 Watts Metal Halide 458 Watts Office & Retail Or 4 Lamp 4’ T12 Mag. Ballast 144→164 Watts 3 Lamp 4’ Super T-8 Elec. Ballast 72 Watts 2 Lamp 4’ Super T-8 Elec. Ballast 67 Watts jacob.goldman@energytaxsavers.com

  15. Lighting Retrofit Economics(For Existing Buildings) • Energy Savings is usually the main driver • In some states, Utilities offer Rebates for energy efficient lighting Installations • Tax Savings is the newest opportunity • Demand Response is another potential income stream • Capitalizing on all the incentives can bring payback for projects to below 2 years and in some cases less than 1 year jacob.goldman@energytaxsavers.com

  16. Retrofit Math 100,000 sq. ft. Warehouse 250 Metal Halides replaced with HiBay Fluorescents • Cost of Project = $75,000 (Assumes $300/fixture installed) • Annual Energy Savings = $26,208/yr • 250 x (0.458 kW-0.220 kW) x 12 hrs/day x 6 day/wk x 50 wk/yr x $0.13/kWh • NGRID Incentive (Product Code 57)= $22,500 • Net of 40% tax rate • Added PV of Tax Deduction = $12,299 • 40% combined tax rate, 8% discount rate, compared to 39 yr depreciation removed(expensed) in year 15 • Payback = 1.1 Years • IRR = 68% Without Rebate, Payback = 2.0 yrs, IRR = 44% jacob.goldman@energytaxsavers.com

  17. What Tends to Qualify on the HVAC side? Geothermal (Ground Source Heat Pumps) Thermal Storage High Efficiency VRF units in Rental Apartments/Dorms/Hotels Centralized HVAC in Rental Apartments/Dorms/Hotels Energy Recovery Ventilation Demand Control Ventilation Chillers in buildings < 150,000 sq ft Direct fired heaters in no AC Industrial Spaces VAV (variable air volume devices) in buildings <75,000 sq ft Chilled Beam Magnetic Bearing Chillers Gas fired chillers combined with electric chillers to peak shave jacob.goldman@energytaxsavers.com

  18. Warehouse Heater & Efficient Lighting jacob.goldman@energytaxsavers.com

  19. Pre-Solar Strategy • Put in energy efficient lighting at the EPAct level • This process will result in a large energy cost reduction • Achieves large tax deductions at the 60 cent per square foot level. • Non air conditioned buildings • Put in an energy efficient heater • Use upgrades (above) to trigger EPAct for roof improvements. • Add insulation • Certain solar systems require a white reflective roof • Move rooftop equipment, including upgrade HVAC off of the roof

  20. EPAct Opportunities • Parking Garages • Fluorescent, Induction, LED • Important in Locals with Benchmarking rules • NY, DC, LA, SF • Warehouses • $1.20 to $1.80 • Excess can be used for roof work related to Solar prep • NJ, CA, CO • Logistic & Truck Distribution • Refrigerated Warehouses & LED’s • Wal-Mart is driving Suppliers to greater efficiency jacob.goldman@energytaxsavers.com

  21. EPAct Opportunities(cont.) • Car Dealers • Restructured from 30,000 down to 18,000 • Remaining are Stronger • Engaged in major brand imaging and facilities upgrades • Hotels • Most favored EPAct category • Lighting retrofits often qualify for full $0.60/sq.ft • If Central HVAC, $1.20 or $1.80 possible • Apartment Buildings • Lighting Combined with Central HVAC great opportunity jacob.goldman@energytaxsavers.com

  22. American Recovery and Reinvestment Act of 2009Tax Credits & Grants in Lieu of Tax Credits *For the first time in U.S. Tax History 100% of the cost of an alternative energy project can be expensed for tax purposes for projects completed after September 8, 2010 and before December 31, 2011. *Also cash grants equivalent to the 30% and 10% credit amounts are available through December 31, 2011 jacob.goldman@energytaxsavers.com

  23. 100% Bonus Depreciation • Placed in Service between 9/9/2010 and 12/31/2011 • Tax Depreciation Schedules less than 20yrs • Examples • Alternative Energy(Solar, Wind, Geothermal, etc.) • Outdoor Lighting not affixed to the building • Qualified leasehold improvements • Non structural interior improvements to non residential real property pursuant to a lease. • Building must be at least 3 years old • Original use must commence with taxpayer • Consult Your Tax Advisor for More Info jacob.goldman@energytaxsavers.com

  24. What does Energy Tax Savers Deliver? • Pre-project EPAct Marketing Material • Complimentary Design Analysis • Complimentary Tax Benefit Assessment • Comprehensive EPAct Tax Package jacob.goldman@energytaxsavers.com

  25. Energy Tax Savers Inc. http://www.energytaxsavers.com/ Energy Tax Savers 144A Jackson Ave Syosset, NY 11791 Phone: 516.364.2630 Fax: 631.240.5165 Email: jacob.goldman@energytaxsavers.com jacob.goldman@energytaxsavers.com

More Related