At Capital Review Group, we identify real property assets and reclassify them for faster depreciation for commercial property owners. We deliver measurable advantages and we know how to increase ROI from Solar and Energy Efficiency opportunities to increase tenant retention while improving operating expenses and by reducing annual operating expenditures. Learn more at http://www.capitalreviewgroup.com.

LEED certification provides building owners and operators a concise framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions and was developed by the U.S. Green Building Council (USGBC).

It works throughout the building lifecycle – design and construction, operations and maintenance, tenant fitout, and significant retrofit.

”LEED certification provides that a building project meets the highest green building and performance measures. Sustainable building strategies should be considered early in the development cycle. An integrated project team will include the major stakeholders of the project such as the developer/owner, architect, engineer, landscape architect, contractor, and asset and property management staff. Implementing an integrated, systems-oriented approach to green project design, development and operations can yield synergies and improve the overall performance of a building. Initial LEED assessment will bring the project team together to evaluate and articulate the project’s goals and the certification level sought.”

There are both environmental and financial benefits to earning LEED certification.

LEED-certified buildings are designed to:

• Lower operating costs and increase asset value.
• Reduce landfill mass.
• Conserve energy and preserve water.
• Be healthier,  safer and more comfortable for occupants.
• Reduce greenhouse gas.
• Qualify for local or regional incentives and often zoning allowances..
• Illustrate an owner’s stewardship and social responsibility.

Eligibility Requirements

There are a series of standard buildings under the LEED voluntary certification: Commercial buildings for New Construction, LEED for Existing Buildings,  LEED for Commercial Interiors, LEED for Retail, LEED for Schools and LEED for Core & Shell rating systems. Building types include – but are not limited to – offices, retail and service establishments, institutional buildings (e.g., libraries, schools, museums and religious institutions), hotels and residential buildings of four or more stories.

Capital Review Group and Marky Moore, a LEED Accredited Professional, can assist if you are unsure whether your building project is a candidate for LEED certification. CRG will participate with you, your architect and contractor to design a LEED building that meets the Federal requirements, or conduct a review of your current building to see how green it is, or how it may be improved to achieve LEED certification for Federal incentives.

For more information call Marky Moore, a LEED accredited professional, at 602 741 7776 or www.capitalreviewgroup.com

Information source: USGBC website

Commercial building deduction

The Act contains provisions for commercial buildings that make improvements or build to standards combining  energy efficiency systems and  energy-saving functions. Commercial buildings that make these energy improvements  may qualify to receive deductions, which can be as much as $1.80 per square foot.  The incentives focus upon improvements to lighting,  HVAC and the building envelope.  Improvements are compared to a baseline and must meet specific standards.

Often many buildings are eligible for tax deductions for improvements completed or planned within the normal course of business; but securing these benefits requires cooperation between the facilities/energy division of a business and its tax/accounting department. For public (federal, state,  municipal and  county ) buildings benefits are passed through to the “primary designers”  in an attempt to encourage innovative municipal design.

Energy management

The commercial building tax deductions can be used to improve the payback period of a prospective energy improvement investment.

Due to the need for and the ease of installation – the most common qualifying projects are in the lighting area. According to the Interim Rules for Lighting Projects: The lighting system energy savings target is a watts per square foot, that is 25% to 40% lower than a specific Standard.  Each property  usage type has a predesigned watts per square feet requirements PLUS a specific requirement for lighting controls.  Meeting the requirements allows the property owner to be eligible for $0.60 per square foot deduction.

Other EPACT  Opportunities

There other ways that your planned or existing building may qualify to receive deductions, such assets as:  lighting, HVAC, water heaters,  a combination of roofing materials, insulation, window glazing, building orientation and ventilation can be designed or improved to be as efficient as current processes and materials will allow.

Additionally, it is possible to  fund your improvements with  potential asset savings  that resides in your present building – or other buildings you may own. You will be surprised to learn how much can be saved over a relatively short period of time.

To learn more about energy conservation incentives or for an initial cost-free consultation, contact M.A. Moore, corporate sustainability advisor at www.capitalreviewgroup.com or directly at 602.741.7776.

There is help available for businesses that are trying to prosper during this turbulent economic period. The Energy Efficient Commercial Building Deduction that offers energy efficiency tax deductions for assets/materials in buildings was extended through 2013.

While some of this assistance may come from bailouts and banks, there are other avenues also well worth researching. For example, a lesser-known corporate tax incentives for energy-efficient building materials and environmental controls for commercial buildings could offer property managers valuable financial breaks.

This is largely a result of the Emergency Economic Stabilization Act (EESA), that former President Bush enacted in October 2008. As part of the package, the Energy Efficient Commercial Building Deduction (EPACT2005, Title 13) was extended for another five years – through December 31, 2013.

This extension of the deduction gives property managers planning new buildings or retrofits plenty to consider since they cover improvements ranging from equipment such as interior lighting to HVAC/duct/air sealing and insulation, roofs, siding and other building materials. Everything used must meet specific certification requirements in order to qualify for the deductions.

According to the Commercial Building Tax Deduction Coalition, a tax deduction per square foot is permitted for owners who install equipment that reduces the building’s total energy and power cost by 50 percent or more in comparison to a building meeting minimum requirements set by ASHRAE Standard 90.1-2001 – or by 16 2/3 percent for one of three subsystems:  lighting, HVAC and water heaters and the building envelope.  “Everyone is more mindful of energy consumption these days,” says Mike Kluber director of engineering firm Kluber Skahan + Associates, Inc. in Batavia, IL and a Certified Energy Manager who is also LEED-certified. “When looking at maintenance plans for your new or replacement equipment, don’t just look at maintaining it but seek better performance.”

Plus, designers and builders that are participating in other energy efficiency programs, such as LEED by the U.S. Green Building Council or the U.S. EPA’s Energy Star, may already qualify for certain deductions for energy-saving materials and equipment.

To claim the tax deduction, Kluber says qualified individuals are required to complete statements involving energy efficiency and typically, requests are made by the building owner or property manager and passed on to the tax professional in order to prepare the tax return documentation. A few components include:

• The engineer’s qualifying statement, which demonstrates how the building complies with required standards
• Required field inspection to prove the use of energy-saving materials or equipment
• Statement of how calculations are performed for each type of equipment or material used. For most items, except lighting, specific software is required.

“Programs like the EESA tax deduction give plenty of reasons, opportunity and education to achieve energy savings. Plus, it’s good stewardship,” Kluber concludes.

To learn more about the energy conservation incentives contact M.A. Moore, corporate sustainability advisor at www.capitalreviewgroup.com or directly at 602.741.7776.

Green building is no longer viewed as a passing fad or a strange notion adopted by militant environmentalists.  In fact, the editors of Harvard Business Review dedicated a large amount of space in their June 2006 issue to explain how green building is now an established mainstream building practice.

Geared mostly toward commercial construction, the article pointed out that even six short years ago, green buildings were generally regarded as interesting experiments but unfeasible in the real world. Since then, hundreds of studies have proven the financial advantages of green buildings (such as energy efficiency tax credits, investment tax credits , specific deductions  and in many jurisdictions utility rebates), from reduced construction costs to lower operating costs. There have also been studies that show employers with green buildings  significant workforce benefits, including better employee attraction and retention, lower absenteeism and improved productivity.

Still there are still some persistent myths that keep some in the residential construction industry from accepting that green building is both proven effective and here to stay.

Myth #1: Green building is too expensive.
This is a common misconception and although it has been debunked many times in the past, debate continues and  it still lingers. “A lot of the high-profile green projects that get builders’ attention are very high-end, and that’s one reason this myth is still around,” says Alex Wilson, president of BuildingGreen Inc. in Brattleboro, Vt. and executive editor of Environmental Building News. “But the simple fact is that there are plenty of strategies for inexpensive green building, from right-sizing the structure to optimal value engineering to reducing waste, among many others.”

Myth #2: Green building is all about material selection.
In the past people have equated green building with using “green materials” such as those with high recycled content, materials originating from sustainable practices, and  no VOCs, etc.  And while that is an important part of constructing a green building, it is still a small part of the big picture. “Other factors such as site selection and energy performance are very important as well,” says Wilson. “People are beginning to gain a greater understanding that green building is a systems approach to the entire construction process.”

Myth #3: Green building products don’t work as well.
Some typical products continue to get a bad rap such as low-flow toilets and fiberglass insulation. People still think that 1.6 gallon-per-flush toilets don’t work, even though the fixtures were mandated for all new construction more than a decade ago, and that inhaling fiberglass fibers can lead to cancer. “By and large, new green products work as well if not better than traditional products,” he says.

Myth #4: Green Products are hard to find.
There is some truth to this one as some green products are not manufactured nationwide and can be hard to purchase in some parts of the country. But the number of green products and systems that are available has grown exponentially over the past few years to the point where there are literally hundreds-if not thousands-of mainstream green products. BuildingGreen Inc. publishes two comprehensive directories :GreenSpec and Green Building Products that provide performance data and contact information on just about every green product imaginable.

Myth #5: Green homes are “weird” or “ugly.”
You don’t have to build a yurt or geodesic dome and mount huge rows of solar panels to be green. The fact is that many of today’s green homes are virtually indistinguishable from “typical” homes and it is possible – should you elect renewable energy – it  to integrate wind or  solar power to your project.

Myth #6: Building a green home is too complicated.
Ron Jones is the owner of Sierra Custom Builders in Placitas, N.M., and a founder and executive editor of Green Builder magazine. In his many talks on green building, he still has to address this myth. “This is a business that is about common sense, and a lot of green building is very fundamental,” he says. “It all begins with a tight building envelope; the rest of it is not very exotic or akin to rocket science.”

Myth #7: To get into green building, you have to sign up for some sort of program or third-party certification.
Builders do not have to get involved with programs such as the U.S. Green Building Council’s LEED and the American Lung Association’s Health House to build green. “Those programs are great at supplying templates and roadmaps,” says Jones. “But green building is really about one project at a time and a builder’s and owner’s will to make a better choice.”

Myth #8: It’s an all-or-nothing proposition.
Jones says there is often a tendency to separate construction professionals into two groups: good guys (those who build only green) and bad guys (those who don’t build green at all). “That’s not true,” Jones says. “I bet there are plenty of people employing green technologies and techniques who may not even know it. I’d bet just about any builder or manufacturer in this country is doing something for green building.”

For more information and to learn more about green commercial building architecture, call Marky Moore, a LEED accredited professional, at 602 741 7776 or www.capitalreviewgroup.com

Source: article by Rob Fanjoy.

In the United States, buildings account for:

39% of total energy use
12% of the total water consumption
68% of total electricity consumption
38% of the carbon dioxide emissions

Our building environment has a vast impact on the natural environment, human health, and the economy. By adopting green building strategies, we can maximize both economic and environmental performance. Green construction methods can be integrated into buildings at any stage, from design and construction, to renovation and deconstruction. However, the most significant benefits can be obtained if the design and construction team takes an integrated approach from the earliest stages of a building project. Potential benefits of green building can include:

Environmental benefits:

• Enhance and protect biodiversity and ecosystems
• Improve air and water quality
• Reduce waste streams
• Conserve and restore natural resources

Economic benefits:

• Reduce operating and maintenance costs
• Create, expand, and shape markets for green product and services
• Improve occupant productivity
• Optimize life-cycle economic performance

Social benefits:

• Enhance occupant comfort and health
• Heighten aesthetic qualities
• Minimize strain on local infrastructure
• Improve overall quality of life

Greening also means there are opportunities for incentives:  tax credits, deductions and rebates.  When considering building improvements not all “improvements” are equal. Property owners need to explore what local, state and federal incentives may be available when deciding capital improvements. Solar, wind, geothermal all are credits from the federal government and may also qualify for state or local credits. Lighting, HVAC and “building envelope” may qualify for federal deductions – and possibly state and local incentives and/or credits. Lighting, HVAC and “building envelope” may qualify for federal deductions – and possibly state and local incentives. The notion of and presence of incentives are vital in today’s economy and ROI is improved dramatically when all factors are considered.

In some cases – we have provided solutions whereby the taxpayer/owner of a property actually makes money after capital expenditures. Be sure all avenues and opportunities are considered prior to making improvement expenditures. To learn more about green commercial building architecture, please visitCapitalReviewGroup.com.

Source of some of the information in this post:http://www.epa.gov/greenbuilding/

EXPIRING ENERGY TAX CREDITS:

There is a broad variety – as well as range of benefits from a particular State Energy Credit(s) to the Federal Energy Tax Credits (or Deductions) – and it is imperative that prior to construction the availability of any credits, deductions or incentives be reviewed to assure the ROI you – as taxpayer may be expecting.

Specifically, there are a number of States whose Energy Credit Accounts are depleted – and there is question as to when the opportunities may be funded.  This is also true regarding local utility rebates – which historically deplete annually – but are often renewed the next fiscal year.

As far as Federal Tax Credits – most are effective and have been renewed at least through 2013 – many have been renewed beyond 2013.  Federal Tax Deductions (under Section 179D) have also been renewed through 2013.

The best resource to review is www.dsireusa.org for the most accurate and up-to-date information on Federal and State Credit opportunities.

ENERGY TAX CREDITS FOR BUSINESS OWNERS:

Energy Tax Credits are available from both State and Federal Programs.  States vary widely in the programs, the technologies covered and the application process.  The most accurate and up-to-date resource is www.dsireusa.org – where you can find not only information your state’s tax credits but also the utility rebate opportunities in your locale.

A common error is to confuse tax “credits” with tax “deductions”.Tax credits are a dollar for dollar reduction in taxes owed – seldom are there issued checks from an agency to a taxpayer for a credit.  A “deduction” is a dollar amount applied against your tax bracket – then the tax liability is reduced by that amount.

The Federal Government offers tax “credits” for renewable/efficiency energy sources:  Solar, Wind, Biomass, Geothermal, Fuel Cells, Combined Heat & Power and Micro-turbine Engines. The “credits” range from 30% without caps to 10% with a variety of caps.

States are completely independent and offer a very broad range of incentives – typically credits.

The Federal Government also offers tax “deductions” for specific efficiencies:  Lighting, Heating/Ventilation/Air Conditioning (HVAC) and the building envelope (the barriers between conditioned and un-conditioned space…or the walls, roof, doors and windows).  The deduction for these efficiencies range from $.30/sq ft to $1.80/square foot of the building area.

It is always best to seek advice when considering the application of any of these tax opportunities – first to maximize your investment dollars and more importantly to assure the correct allocation of any incentive.

The US is experiencing an “identity crisis” – one that revolves around the definitions and perceptions of what is “green“, what is “sustainable” and what is “energy efficient“?

The reason this discussion appears to be problematic is due to the plethora of definitions – typically provided by manufacturers or vendors – of “green/sustainable/energy efficient”.  So many advertisers, contractors/installers and manufacturers report “green/sustainable/energy efficient” materials, products and approaches it becomes difficult to navigate the new environmental landscape.

A sustainable building or green building begins with a concept or design philosophy focusing upon increasing the efficiency of the use of resources.  Among those resources considered must be:  energy-source and use, water – source and use, and materials – source and use.  Additionally, this philosophy of design must evaluate and analyze the reduction of the proposed building considering the impacts on human health – occupancy – as well as the general and local environmental impact throughout the building’s lifecycle.  This phase of the analysis is completed through better project siting, comprehensive “sustainable” design, applied “sustainable”construction methods, commissioning of building systems, on-going sustainable operation/ maintenance, and “sustainable” removal of construction materials.

Sustainable building is a concept incorporating a wide spectrum of solutions and best-practices. Though “sustainable” building is interpreted in many different ways, a common opinion is that a project needs to be designed and operated to reduce the overall impact of the built environment on human health and the natural environment by:

• Efficiently using energy, water, and other resources
• Protecting occupant health and improving employee productivity
• Reducing waste, pollution and preserving the environment

The perception that an energy efficient building is also a sustainable building is – unfortunately, incorrect.  Energy efficiency is certainly an integral factor in a “sustainable” building, however energy efficiency alone – will not qualify a building as “sustainable”.

All of this discussion leads us to the question of the tax credits or benefits available to a property owner for a “sustainable” building.  Probably, the easiest answer is to look to your particular state for opportunities.  Many states now have “Green Building Incentives” – typically applying the definitions and requirements presented for “sustainable” – many following the guidelines under the USGBC (US Green Building Council) for LEED Certified buildings.

These initiatives vary widely – as do the credit limits and application requirements.  The best resource for this information iswww.dsireusa.org a site that updates frequently and provides process and technology – per state that may qualify.

A significant issue – should a taxpayer be interested in the incentives and building a new project is to always apply early for the incentive and check regularly for available resources…in other words – be sure the dollars will be available when your project completes and the verification is scheduled.

There are presently, no Federal Tax Incentives specifically identifying “sustainable/green” construction projects.

As an individual – an interested candidate should go to the US Green Building Council website at: www.usgbc.org.  Once at the website – you will uncover a multitude of potential designations:  LEED GA (Green Associate LEED AP with specialities: New Construction, Exisiting Building, etc) This site will provide all the necessary information and resources for application, test sites and study materials.  Once the test is passed – you will become your targeted designation.  USGBC has now introduced requirements for Continuing Education Credits – check the annual/bi annual requirements to stay up to date.

For more information call Marky Moore, a LEED accredited professional, at 602 741 7776 or www.capitalreviewgroup.com