EXPERT ADVICE: New Tax Breaks for Building Upgrades

EXPERT ADVICE UNPRECEDENTED TAX BREAKS FOR UPGRADES

BY DAVID FORMAN replacements, when combined

I have been in NYC through or incentives, will have reduced the entire pandemic, and staying equipment costs. focused on business is difficult but with NYSERDA and utility rebates necessary. Business and real estate HOW CAN THESE TAX owners are no exception. CHANGES IMPACT YOUR

Buildings need upgrades, HVAC BUSINESS? systems are old or failing, and local Aging or inefficient mechanical laws pertaining to the environment systems are one of the largest costs are nearing compliance dates, such to a facility and are often costly to as the Local Law 97’s Climate upgrade, retrofit or replace. AddiMobilization Act–Carbon Emistionally, with the current health sions Reduction crisis, extra expens2024 penalty date. es for cleaning and take advantage of the CARES Act’s advantage of the deduction, while

For a limited safety have absorbed 100 percent deduction. using creative financing (interest time, your business any cash that was With these tax changes, upgrades, rates are at an all-time low) for the can take advanplanned for capital and improvements, the more enerfunding. tage of an unprecimprovements. gy-efficient systems may yield: Finding the right team that can edented tax relief Building owners • Increased return on investment help you navigate and execute your options available in Vanguard Building Solutions, are also considerfor new capital expenditures; HVAC and mechanical equipment, the 2020 CoronaviLLC is a national provider of ing upgrading their • Reduced payback period for or system options is important. rus Aid, Relief, and multidiscipline building HVAC systems to capital investments; Economic Security solutions and energy savings improve indoor • Even deeper savings when comEditor’s Note: Vanguard is not (CARES) Act. Among those benefits are advanced strategies. Founded in 2013, VBS has been working with all size organizations, helping them make building air quality through supplemental air cleaning services bining these benefits with additional local energy incentive programs; • A depreciation bonus of 100 a tax advisor. Customers should always consult their tax experts and advisors in application of tax tax deductions for improvements, save energy and technologies. percent of the equipment and installaws as it relates to their corporate the cost of equipand money, and reduce Taking advantage of lation cost this calendar year; and or partnership structure and busiment and system greenhouse gas emissions. extra after-tax cash • Energy and money savings on ness operations. Each customer components made flow and utilizing utilities and compliance with local must assess its actual impact. to the interior of a additional rebate laws. building for qualified improvement programs for upgrading systems Many savvy building and busiproperty (QIP) investments under can make the process easier and ness owners are looking ahead at David Forman is vice president IRS tax code Section 168. less expensive. the capital improvement scheduled of Vanguard Building Solutions.

These upgrades can now be fully If cash flow is a concern, you can in the future. They are accelerating Learn more at vbs-energy.com. deducted for tax purposes, includfinance the improvements and still the improvements into 2020 to take ing HVAC, building controls, lighting, boilers, and other systems and components in the first year it is REMEMBERING CLAIRE SHULMAN placed in service versus over a CONTINUED FROM PAGE 13 7 a.m. on some days expressing angel,” Richards can still recall 39-year period. her thoughts on the campaign. the first meeting he ever had with

For commercial buildings, the Even at 94 years old, Shulman “I felt like I was her last big her at her kitchen table. They sat cost of HVAC equipment and was involved in the politics and project,” he said. “I will cherish and talked for almost five hours Building Automation Systems economic development of Queens. every moment.” about her love for the borough, the installed or upgraded in 2020 may Months prior to her death, she The councilman said Shulinstitutions she built and what she be fully deducted as a business endorsed Councilman Donovan man’s legacy lies in all of the hoped for the future. expense, and can include costs Richards for borough president, institutions she helped build “She wanted someone to sucincurred as far back as January 1, appearing with him at the Unithroughout Queens, from the ceed in the seat she thought would 2018, with no limits on the cost of sphere at Flushing MeadowsQueens Museum and the Hall of build on her legacy,” Richards equipment. Corona Park to announce her Science to the Jamaica Cultural said. “I always said, ‘why me?’”

Qualifying expenses include support. He would later win the and Arts Learning Center and Should he win in November, purchased systems as well as Democratic primary. Roy Wilkins Park. Richards said he wants to “get components and labor costs, and Richards said she was an early “These institutions have stood stuff done” just like his mentor qualifying buildings include nonsupporter of his run, and said she from her tenure until now,” he and dear friend Claire Shulman. residential or commercial buildings followed his career long before said. “What she built led to the “I plan on getting plenty of (excluding new construction). he knew it. She followed the race betterment of our borough.” shovels in the ground in my ten

Your building Upgrades and closely, even sending him texts at Calling Shulman his “guardian ure,” he said.