Contractors Center Point

IRS increases Mileage Rate to 55.5 Cents Per Mile

In a move that many expected, the IRS announced today an increase in the mileage rate effective July 1^st.

This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011. 

The medical and moving rate will also increase to 23.5 cents. 

The IRS normally updates mileage rates once a year in the fall for the next calendar year, but with recent increases in fuel prices decided to make this mid-year adjustment. 

The announcement can be found at this link on the IRS website.

DOE Releases Guide On Energy-Efficient Office Buildings

The U.S. Department of Energy has announced the release of the first in a new series of Advanced Energy Design Guides (AEDGs) to aid architects and engineers in the design of highly energy-efficient office buildings. The 50% AEDG series will provide a practical approach to commercial buildings designed to achieve 50% energy savings compared to the commercial building energy code used in many areas of the country. This 50% AEDG for Small and Medium Office Buildings is the first in a series of four to be released in the coming months. These commercial building guides support President Obama’s goal to reduce energy use in commercial buildings 20% by 2020 and will help drive demand for energy-saving products made in the United States.

Not only will these guides help builders achieve performance beyond the current energy code, but they will also provide recommendations detailing how designers can incorporate available technology to achieve these savings. The guides help architects and engineers choose energy-efficient designs for daylighting, building envelope assemblies, and heating and cooling systems, among other technologies. The guides also recommend equipment commonly available from manufacturers and reduce the time and cost burdens otherwise required in order for designers to individually model energy use for specific high performance buildings. Additionally, the guides will inform the development of future commercial building energy codes.

Save Money By Investing In Energy Projects

Whether you or your company is seeking to be more eco-friendly, reduce operating costs, or just searching out new methods of saving money, tax saving credits can be a remedy for each of these personal or business concerns.

In 2008 a $700 billion Emergency Economic Stabilization Act (See this link for the energy tax incentives) was passed by Congress and included $150 billion of added tax incentives. The law includes an AMT relief act, a disaster relief act, an alternative energy bill and the extender bill. In addition to the 2008 Emergency Economic Stabilization Act, The American Recovery and Reinvestment Act of 2009 (Recovery Act) amended or added numerous energy tax incentives available to businesses, utilities, and government.

The Recovery Act provides additional tax incentives for consumers in addition to businesses. The Recovery Act amends several provisions of the U.S. Tax Code, expanding or providing new renewable energy incentives for businesses, utilities, and governments who produce or utilize renewable energy.  These incentives generally take the form of tax credits for the production of electricity and facilities that utilize wind, refined coal, geothermal, biomass, solar, and combined heat and power systems.

As with most tax credits, money has to be spent in order to reap the reward of receiving a tax credit from Uncle Sam. Energy savings for businesses are found by making your building more energy efficient. The incentive is a deduction of the cost for creating a more energy efficient property. The deduction can only be taken by the party expensing the costs of the project. Tax deductions range from $0.30 - $1.80 per sq. ft. of affected area. These deductions are for both new construction projects as well as renovation projects. Included below is a chart identifying some of the requirements which must be fulfilled before you are qualified to take these benefits. Take a look and see what you qualify for.

  
  

Keep in mind that energy efficient tax credits have different end dates and some have been extended (See www.energystar.gov).

There are many other credits available, not all pertaining to construction, which are relevant to everyone on a consumer level such as the plug-in electric drive vehicle credit, Solar, Turbine or Wind credits, or Bicycle commuter fringe benefits.

For more information on energy tax credits available, please contact the construction professionals of McKonly and Asbury, LLP.

Federal Construction Contractors Must Bid and Build Green

Federal construction contractors will have to comply with “sustainable building design, construction, renovation, repair, commissioning, operation and maintenance, management and deconstruction practices” under an interim rule issued by the Federal Acquisition Regulatory Council on May 31. In addition, contractors that do not bid electronically for federal government work will have to use double-sided, 30 percent post-consumer fiber paper. The new rule, which implements executive orders issued in January 2007 and October 2009, are designed “to advance sustainable acquisition by ensuring that 95 percent of new contract actions (including those for construction) contain requirements for products that are designated as energy-efficient, water-efficient, biobased, environmentally preferable (e.g., EPEAT-registered, non-toxic or less toxic alternatives), non-ozone depleting, or those that contain recovered materials.” The FAR Council will accept comments on the rule through Aug. 1.

For more information on this interim rule or other construction related matters, please contact the Construction Professionals at McKonly and ASbury, LLP.