CLICK ON EACH FILE IN THE LEFT HAND COLUMN TO SEE INDIVIDUAL PRESENTATIONS. If no column is present: click Bookmarks or Pages on the left side of the window. If no icons are present: Click V iew, select N avigational Panels, and chose either Bookmarks or Pages. If you need assistance or to register for the audio portion, please call Strafford customer service at 800-926-7926 ext. 10 Building Green: Legal and Tax Issues in Commercial and Residential Construction Navigating the Regulatory and Legal Challenges of Sustainable Real Estate presents Today's panel features: Jeffrey D. Masters, Partner, Cox Castle Nicholson, Los Angeles CJ Aberin, Senior Manager, KBKG Inc., Pasadena, Calif. Don Neff, President, La Jolla Pacific, Ltd., Irvine, Calif. Tuesday, April 21, 2009 The conference begins at: 1 pm Eastern 12 pm Central 11 am Mountain 10 am Pacific The audio portion of this conference will be accessible by telephone only. Please refer to the dial in instructions emailed to registrants to access the audio portion of the conference. A Live 90-Minute Audio Conference with Interactive Q&A
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CLICK ON EACH FILE IN THE LEFT HAND COLUMN TO SEE INDIVIDUAL PRESENTATIONS.
If no column is present: click Bookmarks or Pages on the left side of the window.
If no icons are present: Click View, select Navigational Panels, and chose either Bookmarks or Pages.
If you need assistance or to register for the audio portion, please call Strafford customer service at 800-926-7926 ext. 10
Building Green: Legal and Tax Issues in Commercial and Residential Construction
Navigating the Regulatory and Legal Challenges of Sustainable Real Estatepresents
Today's panel features:
Jeffrey D. Masters, Partner, Cox Castle Nicholson, Los Angeles
CJ Aberin, Senior Manager, KBKG Inc., Pasadena, Calif.
Don Neff, President, La Jolla Pacific, Ltd., Irvine, Calif.
Tuesday, April 21, 2009
The conference begins at:1 pm Eastern12 pm Central
11 am Mountain10 am Pacific
The audio portion of this conference will be accessible by telephone only. Please refer to the dial in instructions emailed to registrants to access the audio portion of the conference.
A Live 90-Minute Audio Conference with Interactive Q&A
1
Building Green: Commercial Tax Incentives & Strategies
What is the Energy Efficient Commercial Building Deduction?
IRC Section 179D allows for an immediate depreciation deduction of up to $1.80/sf for “commercial buildings”that achieve a 50% reduction in total energy and power costs.
“Commercial Buildings” includesPublic & government buildingsTypical commercial buildings (i.e. office, retail, industrial, etc…)Rental housing that is 4 stories or higher
ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) Standard 90.1-2001 defines buildingsMust be located in the United States
Multiple paths to deductionWhole $1.80/sf for 50% or greater reduction in total annual energy cost related to HVAC and interior lighting in comparison to ASHRAE Standard 90.1-2001Partially Qualifying Property
Up to $0.60/sf for Building EnvelopeUp to $0.60/sf for HVACUp to $0.60/sf for Interior Lighting
50% energy & power reduction cost for HVAC and lighting is achievable but very ambitious.
Requires proactive design from architects & engineers familiar with EPActIn 2005, less than 5% of “commercial buildings”could qualify for full deductionLEED (Leadership in Energy and Environmental Design) certification doesn’t guarantee full deduction
EnvelopeBetter insulation & windowsUse of daylightingReflective coatings
HVACMore efficient HVAC equipment & controlsGeothermal systems and heat pumpsThermal energy storageEvery 3-watt reduction in lighting power results in roughly a 1-watt reduction in HVAC
LightingMore efficient luminaries, ballasts, and lampsBi-level switchingLighting retrofit project can range from $0.60 to $2.00/sf
Government may allocate 179D deduction for use by the designer(s) in year of PIS date.
Designer, architect, engineer, contractor, environmental consultant, or energy services provider who creates the technical specs that incorporate energy efficiency.
Government can allocate to primary designer or among several designers.Deduction doesn’t trigger income.
30% Tax Credit for solar energy property PIS by December 31, 2016
Equipment which uses solar energy to generate electricity, to heat or cool a structure, provide hot water in a structure, or to provide solar process heat.Equipment which uses solar energy to illuminate the inside of a structure using fiber-optic distributed sunlightSolar energy property also has a 5-years MACRS tax life.
30% tax credit also available for:Certain fuel cell power plantsSmall wind energy property
10% tax credit available for:Equipment used to produce, distribute, or use energy from a geothermal depositCertain microturbine power plantsCertain CHP or cogeneration systemsGeothermal heat pumps
If possible, perform cost segregation studyProvides even greater accelerated depreciation deductionsDoesn’t negatively impact energy efficiency deduction and can be used togetherAllows for a correct and increased allocation of costs for any energy property that qualifies for tax credit (i.e. solar energy property + ~35%)
A. “Green” has become mainstream, consider the following:
1) 75% of Americans consider themselves “environmentalists”
Source: The Wall Street Journal Survey
2) 87% of Americans say they are “concerned” about the environment Source: Environmental Research Associates
3) 86% of Americans would choose one home over another based on energy
efficiency Source: The Shelton Group
B. Why now? What are the driving forces? 1) Economics 2) Awareness of global warming issues
3) International green building influences
4) Desire for healthier living and working environments
5) Energy codes
6) Environmental regulation and stewardship
C. What does “green” really mean?
Per USGBC:
The Office of the Federal Environmental Executive defines green building as “the practice of 1) increasing the efficiency with which buildings and their sites use energy, water, and materials, and 2) reducing building impacts on human health and the environment, through better siting, design, construction, operation, maintenance, and removal — the complete building life cycle.”
D. Implementing a green building program 1) Prescriptive vs. performance-based programs 2) Select the right program based on your projects goals and objectives
1) Start early!!! 2) New technology and materials 3) Trade partner awareness and training 4) More complex assemblies need detailed drawings and specs 5) Consumer awareness and education
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About La Jolla Pacific
With an extensive background in direct construction experience, La Jolla Pacific Ltd. is an industry leader in construction risk management, third-party peer review, green/sustainable building, quality assurance, and forensic investigation services. For more than a decade, the firm has provided its exclusive Shark Repellent® package of proactive defensive strategies to single-family, multi-family and commercial builders across the US. For further information about La Jolla Pacific Ltd.’s array of services, please visit www.lajollapacificltd.com.