Maximize Savings with Expert Tax Strategies
At Cost Segregation Professionals, we specialize in helping property owners, investors, and businesses unlock powerful tax-saving opportunities. From cost segregation studies and accelerated depreciation to 179D energy efficiency deductions and R&D tax credits, our services are designed to reduce your tax burden and improve cash flow. With expert guidance and IRS-approved strategies, we ensure you maximize every available deduction. Explore our services to see how we can help you keep more of what you earn.
Capture Bonus Depreciation Opportunities
The phased reduction of bonus depreciation has created uncertainty for many property owners. However, there are still valuable opportunities to claim this benefit under current rules:
100% Bonus Depreciation
If you purchased qualifying property between September 27, 2017, and December 31, 2022, you may still claim 100% bonus depreciation.
80% Bonus in 2023
Qualifying property purchased in 2023 allows for accelerated depreciation and bonus without the need to amend previous tax returns. This is achieved through a simple accounting method change, which we can facilitate by completing IRS Form 3115 for you.
60% Bonus in 2024
For property purchased in 2024, you can claim 60% bonus depreciation by completing a cost segregation study before filing your tax return. No Form 3115 is required.
Research & Development Tax Credits
The Research and Development (R&D) Tax Credit, established in 1981 and made permanent in 2016, offers significant tax benefits to companies of all sizes. This credit provides a dollar-for-dollar reduction in tax liability for qualifying research activities. Eligible expenses include wages, supplies, and contractor costs related to R&D projects. Companies can claim credits for the past three years and carry forward unused credits for up to twenty-five years. Small businesses with less than $50 million in gross receipts can even use these credits to offset Alternative Minimum Tax (AMT). By taking advantage of the R&D Tax Credit, businesses can reinvest in innovation and fuel growth.
Streamlining R&D Expense Deduction
Significant changes to the treatment of R&D expenses are also under consideration. Currently, businesses must capitalize and amortize research costs over five years domestically (and 15 years for foreign research). The Trump administration’s proposal to revert to immediate expensing of R&D expenditures could greatly benefit companies prioritizing innovation.
Anticipated impacts of this proposal include:
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The elimination of mandatory amortization requirements
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Immediate tax deduction for R&D spending
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Improved cash flow for innovation-focused businesses
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Potential for increased domestic research investments
Bipartisan support for this change highlights its importance, with the potential to enhance R&D tax credits and fuel investment in cutting-edge research and development.
Overview of R&D in Real Estate
Research and Development (R&D) in real estate refers to the systematic study and innovation of new methods, technologies, and materials to enhance property development, management, and investment. It involves market research, technological advancements, construction innovations, and sustainability practices to improve efficiency, reduce costs, and create smarter, more livable spaces.
Explore more on R&D
179D Opportunities
Building owners who place in service energy-efficient commercial building property (EECBP) or energy-efficient commercial building retrofit property (EEBRP) may qualify for a tax deduction.
An increased deduction may be available if energy savings are significantly improved or if prevailing wage and apprenticeship requirements are met.
The deduction is provided under Internal Revenue Code (IRC) Section 179D, which was expanded under the Inflation Reduction Act of 2022. This offers an excellent opportunity for building owners to reduce tax liability while contributing to energy conservation and sustainability goals.
A 179D energy study is a technical analysis conducted to determine whether a commercial building qualifies for the 179D Energy-Efficient Commercial Building Deduction under the U.S. tax code. This study is performed by a qualified third-party professional, such as a licensed engineer, and involves evaluating the building’s HVAC systems, lighting, and building envelope to measure energy efficiency improvements. The analysis compares the building’s energy performance against the ASHRAE 90.1 standard to verify if it meets the required 25% or greater energy savings threshold. The study must use IRS-approved software and result in a formal certification report, which is essential for claiming the tax deduction.
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Planning: Key Considerations
As these potential policy changes unfold, businesses should act strategically to optimize their tax benefits. Key areas to evaluate include:
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Timing and planning for capital investments
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Reviewing and updating depreciation strategies
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Assessing R&D activities to ensure proper documentation
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Exploring energy efficiency incentives under Section 179D
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Consulting with tax specialists to maximize incentives
Proactive planning now can help your business stay ahead and fully capitalize on available opportunities.
Green Zip Tape
When it comes to qualifying for the 179D energy efficiency tax deduction, every detail matters—including the materials used in your commercial building project. Green Zip Tape plays a crucial role in achieving the necessary energy savings to unlock valuable tax incentives while improving the overall efficiency of your property.
By using Green Zip Tape in construction, building owners and developers can enhance their property’s air sealing and insulation, making it easier to meet or exceed 179D energy efficiency requirements. This not only contributes to sustainability and long-term cost savings but also ensures eligibility for federal tax incentives. As energy codes become stricter, incorporating high-performance materials like Green Zip Tape is a proactive step toward maximizing your commercial building energy tax credits and reducing long-term operating expenses.
Let our experts guide you in leveraging Green Zip Tape and 179D tax benefits to optimize your building’s efficiency and tax savings. Reach out today to learn how your project can qualify for federal energy efficiency deductions and put more money back in your pocket.