1. Engineered Tax Services (ETS) is a licensed energy engineering firm with specialty tax
expertise marrying the science of engineering with the principles of tax and accounting. We
find solutions that result in increased cash flow, minimized tax payments and maximized
return on investment. Ask how we can help increase your cash flow through any of the
following services
Palm Beach (Headquarters) | Atlanta | Boston | Charlotte | Chicago | Cleveland | New York | San Diego | San Francisco
Los Angeles | Miami | Tampa | Salt Lake City | Las Vegas | St. Louis | Denver | Houston | Seattle | Portland
Cost Segregation, Construction Tax & Energy Planning
A cost segregation study is an IRS approved federal income tax tool that
increases near term cash flow by utilizing shorter recovery periods to
accelerate the return on investment in property. Whether newly
constructed, purchased or renovated generally over the last 10 years, the
components of your building may be properly classified through a cost
segregation study into accelerated recovery periods for computing
depreciation deductions. The study carves out with forensic engineering
detail into 5, 7 and 15 year lives, certain qualifying portions of your
building that are normally buried in 39 or 27½ year categories. Done
proactively, prior to or during the design/construction process, ETS can
work to help maximize your allowable depreciation, improve the
functionality and energy efficiency of your design, and help capture all
available federal, state and local utility energy tax incentives.
EPAct 179D Federal Energy Tax Deductions
We specialize in the energy tax certification process required by the IRS
to calculate the tax deductions achieved for the installation of energy
efficient systems including Lights, HVAC, and Building Envelope
components completed from 2006-2014. The deduction ranges from $.60
per sf and $1.80 per sf. We have provided thousands of the highest quality
energy tax certifications since 2005. Completing over 200+ certifications
every month, we have perfected the process to maximize benefits and
reduce risk by working closely with the IRS on a regular basis. Our CPAs,
Engineers and Architects on staff strengthen our credibility and IRS
qualifications under EPAct.
Energy Audits, LEED & Energy Star Benchmarking
In addition to being the first step in LEED certification, our forensic energy
audit includes a detailed report with extensive and precise breakdowns of
your current annual energy use and costs. Understand your building’s
energy efficiencies (or waste) and the alternatives to reduce energy use
and operating costs. Our energy audit services range from a peripheral
inspection to a fully detailed inspection audit and Energy Star
Benchmarking. A comprehensive facility energy audit is a survey of a
building or facility that also provides sufficiently detailed information to
help qualify for various additional Federal, State and local Utility company
incentives.
Repairs & Maintenance TPR Regs Studies
With a detailed analysis of your expenses for repairs and maintenance, we
can help you reduce your tax liability and improve cash flow by properly
reclassifying these expenditures. First, we identify which asset costs are
not properly classified, then reclassify them as deductible repairs as
defined by IRS Code Sections 162 and 263. Deductible repairs may include
reoccurring and incidental repairs that help to maintain efficient
operating condition but do not necessarily prolong its life, add material
value or adapt the property for new or different use. Expenses incurred or
paid for incidental repairs and maintenance are not considered as capital
expenditures and may be reclassified to accelerate deductions in the
current year. A proposed regulation, likely to be released this year, may
also allow certain cosmetic and remodeling expenses, such as those that
would improve branding, retail or merchandising, or provide a property
"facelift", as deductible under the repairs and maintenance rules.
Abandonment & Disposition TPR Regs Studies
When you undertake demolition or renovate a building and remove old
lighting, HVAC units and other building parts, these assets are abandoned.
As such, their book value can be treated as a business deduction. The
tangible personal property within the structure (or a part of it) can be
written off when the building is demolished, provided that the personal
property is to be abandoned, was not purchased with the intent to
demolish, and is identified and valued prior to demolition.
Engineered Insurance Replacement Appraisals
An engineering-based insurance appraisal is a replacement cost analysis
that provides an accurate estimate of the amount of insurance required to
replace each structure and/or amenity exactly as it stood. We calculate
each building’s replacement cost on a component-by-component basis
from the ground up and process the complex calculations needed to
correctly estimate the labor and material costs. We provide a “Detailed
Engineering Insurance Replacement Appraisal” (DEIRA) that is accepted
by national insurance company underwriters to establish accurate
property valuations, reduce and/or eliminate disagreements following a
covered loss, and most importantly, reduce premiums while improving
coverage terms and conditions. We have a 90% success rate for our
clients.
Historic & Preservation Tax Credits
The federal tax law offers incentives to taxpayers who contribute to the
preservation of our nation's old and historic buildings. By rehabilitating
directly in the rehabilitation of eligible buildings, you can take advantage

2. Engineered Tax Services (ETS) is a licensed energy engineering firm with specialty tax
expertise marrying the science of engineering with the principles of tax and accounting. We
find solutions that result in increased cash flow, minimized tax payments and maximized
return on investment. Ask how we can help increase your cash flow through any of the
following services
Palm Beach (Headquarters) | Atlanta | Boston | Charlotte | Chicago | Cleveland | New York | San Diego | San Francisco
Los Angeles | Miami | Tampa | Salt Lake City | Las Vegas | St. Louis | Denver | Houston | Seattle | Portland
of one of two tax credits. The federal income tax credit is equal to 20% of
the cost of rehabilitating historic buildings or 10% of the cost of
rehabilitating non-historic buildings constructed before 1936. These
credits provide a dollar-for-dollar reduction of income tax owed.
Buildings eligible for the 20% rehabilitation credit include those used for
rental residential as well as nonresidential purposes. Buildings eligible for
the 10% rehabilitation credit must be nonresidential, commercial and
industrial buildings.
Reserve Studies & Facility Audits
Our reserve study is a comprehensive report of any major components
that will need repairs, restoration, maintenance or replacement within the
next 30 years. During a reserve study each component is evaluated to
determine the current condition, remaining useful life and the estimated
replacement cost. The data is then synthesized to determine the annual
contribution needed to avoid special assessments in the future. All costs
and annual reserve balances are shown both in constant dollars and
adjusted for inflation and interest. The most accurate reserve studies are
conducted by an engineer who understands building construction.
Research & Development Tax Credits
The Research & Development (R&D) tax credit is one of the most
significant domestic tax credits remaining under current tax law – a
substantial tool for maximizing a company’s cash flow and bottom line.
No one can afford to leave money on the table. Nevertheless, when it
comes to the R&D credit, cash is left untouched all the time. Despite the
fact that the R&D credit has been available since 1981, less than a third of
eligible companies recognize that they qualify for the credit. Even if
companies claim an R&D credit, they frequently do not claim the entire
credit to which they are entitled, either because they do not understand
what qualifies or do not have the processes in place to properly document
the credit. The credit is a dollar-for-dollar cash offset against your taxes
and can be significant if properly pursued.
Renewable Energy Tax Credits & Project Financing
There are various other Federal, State and local utility tax incentives
available for renewable energy projects such as Solar, Wind, Geothermal,
Microturbine and other “green” energy and energy efficiency projects.
ETS will assist from the planning stages of through implementation and
certification. ETS also has innovative financing options available to assist
with the capital required for new buildings, renovations and overall
project financing and at times even providing 100% of the required capital
in a lease or off balance sheet structure.
Utility Tax Audits
Utility Tax Reductions and/or Exemptions help to capture substantial
immediate savings and retroactive cash refunds. Most states and local
jurisdictions assess sales or other excises taxes on the purchase of utilities
including, but not limited to, electricity, natural gas, water and
wastewater. Depending on the taxing jurisdiction(s), use of the utility in
the customer's locations, type of operation, multiple locations, etc. It is
not widely known or published that said taxes and other fees may be able
to be reduced or eliminated completely in addition to substantial
retroactive cash refunds. These jurisdictions require detailed onsite
engineering use or predominant use studies by a qualified independent
3rd party to determine the exact percentages of energy and utility use in
various areas and specific operations. ETS can supply full services in this
niche energy tax area including identification and quantification of the
opportunity including an overall strategy for success, details on prevailing
rules, local laws, completion of a onsite use/predominant use study,
processing of exemption or reduction certificate and processing of cash
refunds and/or credits for past statutory periods as well as other energy
tax and efficiency actions to help maximize benefits and increase cash
flow. Laws, treatment and process varies widely between various states
and local utility jurisdictions.
1. Utility Tax Targets: Multi-Site Operations, Retail, Hospitality, Oil &
Gas Processors, Manufacturing and Distribution Operations,
2. Look For: Generally buildings over 20,000 sf and/or utility costs
greater than $3,000 per month.
3. Next Step: Gather one to two months of last utility bill invoices for a
quick no-risk, no-cost review for benefit analysis.
About ETS
Engineered Tax Services (ETS) is a professionally licensed energy
engineering firm with specialty tax expertise working nationally with top-
100 CPA firms, Architects, Fortune 500 Companies and commercial
property owners providing 179D Federal Energy Tax Certifications,
Engineering-based Cost Segregation studies, Construction Tax and Energy
Planning, DEIRA Insurance Replacement Appraisals, R&D tax credits and
other niche services. ETS averages 200+ studies per month delivering
over $50 million per month in tax benefits back to our clients.
Ask us what your property qualifies for...
ETS Contact:
Michael F. D’Onofrio,
Managing Director
Engineered Tax Services
561-762-0044 Direct
mdonofrio@engineeredtaxservices.com
www.engineeredtaxservices.com
CPE Professional Education Approved For:
CPAs, AIA, USGBC, NSPE, ASHRAE