Dave McGuire - dmcguire@mcguiresponsel.com The last couple of years have seen increased inflationary pressures. There are few industries that are hit by this harder than the construction and real estate industries. While many consumers started to see this in 2021 and 2022 as gas and housing prices started increasing, the construction industry started feeling the pressure much earlier. Supply chain disruptions due to COVID, lumber, gas, and other commodities have been increasing at an extraordinary rate, leading contractors and their advisors to question where to generate additional cash flow to offset these pressures. One place to look is the tax code. Specifically looking at incentives designed for contractors, designers, and other construction industry professionals. Some of the lesser-known incentives for contractors relate to the Energy Policy Act of 2005 (EPACT). Under this act multiple incentives were put in place to incentivize energy efficient construction practices. While most of these provisions were designed to be temporary under EPACT, many have been extended multiple times, or made permanent. By maximizing these incentives individuals in the construction industry can generate additional cash flow to offset inflationary pressures. The first area to look at is the 179D Energy Efficient Building Deduction. This deduction of up to $1.80/sf was originally designed for the owners of energy efficient commercial properties. When a property is built with efficient lighting, HVAC, and insulation the owner can qualify for this deduction which reduces their depreciable basis in the asset. In order to qualify the building needs to be modeled to show that the energy consumption is 50% of a standard building designed to the ASHRAE 90.1-2007 regulations. This can be done on new construction property or renovations that increase the energy efficiency to the desired level. Contractors might be wondering “what does this have to do with me”? While it is wonderful that the owner can receive a deduction for the installation of energy upgrades, how would a contractor or engineer see any benefits? The answer to that question lies in the fact that properties owned by federal, state, or local governments can transfer their deduction to the designer of the energy efficient property. Meaning that if a construction company designs HVAC and lighting upgrades for a school, that school can transfer the deduction back to the construction company. It is important to note that the transfer needs to be done to a company or individual involved in the design and that “a person who merely installs, repairs, or maintains the property is not a designer.” However, an “architect, engineer, contractor, environmental consultant, or energy services provider” that works on “technical specifications” is considered a designer. This means that a contractor that assists in writing the specifications or design of the property can legitimately claim this deduction. The 179D deduction was originally slated to expire after a few years. However, Congress extended the rules multiple times. Then in the Consolidated Appropriations Act, 2021 the rule was made permanent, meaning that contractors can rely on this deduction for designs being completed in 2022 and beyond. Another energy incentive that contractors need to be aware of is the 45L, Energy Efficient Home Credit. While this credit did expire at the end of 2021, eligible contractors can still claim this deduction on amended returns for prior years. This credit, like the 179D deduction, requires new construction to exceed certain standards. However, unlike the 179D deduction, this credit is only for newly constructed or renovated residential facilities of three stories or less. More importantly, this credit is designed not for the final owner, but for the developer who owns the property during the development cycle. While the 179D deduction is based on square footage, the 45L credit is a credit of up to $2,000 per residential unit. This means that a developer that constructs a qualifying apartment complex can take the credit on each of the units in the property. A 300-unit qualifying apartment complex could see a credit as high as $600,000. And as opposed to the 179D deduction, this is a credit, meaning a dollar-for-dollar reduction in tax liability. As noted above, contractors need to be aware that this credit has expired, but there is a good chance that it will be extended in tax extenders legislation later in 2022. With inflationary pressure at the highest in 20 years, contractors need to be aware of any cash flow opportunities available to them. By looking at these and other tax incentives, cash can be generated by reducing tax liability. It is critical that contractors and their CPAs be aware of all these incentives when preparing the 2021 tax returns and planning for future years." target="_blank">Tax Incentives to Help Contractors Combat Inflation

Submitted by Dave McGuire - dmcguire@mcguiresponsel.com The last couple of years have seen increased inflationary pressures. There are few industries that are hit by this [...]

By |2022-04-11T16:17:19-05:00April 11th, 2022|AM Whitepaper, Announcements, CICPAC|

Lazear Capital Partners is a leading middle market investment bank specializing in ESOPs, Mergers and Acquisitions, Capital Formation, and Turnaround Advisory Services. They guide clients through every step of their business succession or exit strategy.

“Lazear Capital Partners is a consultant for business financing – whether it is buy, sell, invest or M&A. Calling them an investment banker is a disservice to what they do. They get and find money to fund growth and serve as a business financial management partner for their clients.”

- Michael Marlowe, Co-Founder at Bluemile Inc.

About Lazear Capital Partners

Lazear wants to make your dreams come true. Going above and beyond to guide you every step of the way, Lazear is more than just an investment banking firm, they are part of your team. Taking the time to understand your business needs, they make their clients top priority. Whether you are looking to create a succession plan, clearly define your exit strategy or develop an employee stock ownership plan (ESOP), they solidify the best option(s) for you that will result in long-term benefits. Coupling business experience with legal and financial expertise, Lazear standouts from other firms. Contact them to put their negotiating skills to work and help transition into the next chapter of life. If you (or your clients) are considering a sale or other ownership transition, allow Lazear the opportunity to review your situation and provide thoughts on how to maximize value, all at no cost should you decide not to retain our services. Please contact
Doug Janowski or (614) 221-1616 if you would like to learn more about our services. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">Lazear Capital Partners Joins CICPAC as Associate Member

Lazear Capital Partners is a leading middle market investment bank specializing in ESOPs, Mergers and Acquisitions, Capital Formation, and Turnaround Advisory Services. They guide [...]

By |2022-02-22T12:55:06-05:00February 22nd, 2022|Announcements, CICPAC, Member News|

  • Wes Winborne, HORNE LLP – President
  • Bryan Eto, Beach Fleischman - Vice President
  • Christina Chifici, LaPorte CPAs & Business Advisors –Secretary / Treasurer
  • Mike Karlins, Calvetti Ferguson – Immediate Past President
  • Josh Billiard, Plante Moran – Member at Large
  • Gray Coyner, Thompson Greenspon – Member at Large
  • Matt Neely, MCM CPAs – Member at Large
  • Please extend a warm welcome to our new slate of officers![/fusion_text][fusion_button link="https://cicpac.com/about-us/leadership/" text_transform="" title="" target="_self" link_attributes="" alignment_medium="" alignment_small="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" accent_color="" accent_hover_color="" type="" bevel_color="" border_width="" border_radius="" border_color="" border_hover_color="" size="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]More about our Leadership[/fusion_button][/fusion_builder_column][fusion_builder_column type="1_3" layout="1_3" align_self="auto" content_layout="column" align_content="flex-start" valign_content="flex-start" content_wrap="wrap" spacing="" center_content="no" link="" target="_self" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" type_medium="" type_small="" order_medium="0" order_small="0" dimension_spacing_medium="" dimension_spacing_small="" dimension_spacing="" dimension_margin_medium="" dimension_margin_small="" margin_top="" margin_bottom="" padding_medium="" padding_small="" padding_top="" padding_right="" padding_bottom="" padding_left="" hover_type="none" border_sizes="" border_color="" border_style="solid" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center center" linear_angle="180" background_color="" background_image="" background_image_id="" background_position="left top" background_repeat="no-repeat" background_blend_mode="none" render_logics="" filter_type="regular" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" last="true" border_position="all" first="false" spacing_left="1.3333333333333333%"][fusion_imageframe image_id="5725|full" max_width="" sticky_max_width="" skip_lazy_load="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align_medium="none" align_small="none" align="none" margin_top="" margin_right="" margin_bottom="" margin_left="" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"]https://cicpac.com/wp-content/uploads/2021/08/2021-22-Board-of-Directors-CICPAC-CPAs.png[/fusion_imageframe][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">Announcing the 2021-22 Board of Directors

    When it comes to passing the gavel from the past year’s leadership to the new, it seems to happen faster every year! It is my [...]

    By |2021-08-02T10:53:27-05:00August 2nd, 2021|Announcements, CICPAC|

    2021 List of Forbes America's Best Tax and Accounting Firms has been released! We are so excited that 34 CICPAC member firms have made the list! Congratulations to all the firms and their dedication to the tax and accounting industry!
    • Adams Brown
    • Aldrich CPAs + Advisors
    • Atkinson & Co. (now CLA)
    • Barnes Dennig
    • BeachFleischman
    • BerganKDV
    • BerryDunn
    • Blue & Co.
    • Brickley DeLong
    • Calvetti Ferguson
    • CliftonLarsonAllen
    • CohnReznick
    • GBQ Partners
    • Gollob Morgan Peddy
    • H&CO Advisors
    • HHM - Henderson Hutcherson & McCullough
    • HoganTaylor
    • Iannuzzi Manetta
    • James Moore
    • KSM - Katz Sapper & Miller
    • Lane Gorman Trubitt
    • LaPorte CPAs & Advisors
    • Lutz
    • Marcum LLP
    • MCM LLP
    • Plante Moran
    • RBT CPAs
    • SAX
    • Stambaugh Ness
    • SVA Certified Public Accountants
    • Thompson Greenspon
    • Warren Averett
    • Yeo & Yeo
    • YHB - Yount, Hyde & Barbour
    " target="_blank">34 CICPAC Member Firms Named to Forbes America’s Best Tax and Accounting Firms List

    The 2021 List of Forbes America's Best Tax and Accounting Firms has been released! We are so excited that 34 CICPAC member firms have made [...]

    By |2021-02-17T11:58:20-05:00December 9th, 2020|Announcements, CICPAC, Construction, Member News|

    said Henry South, Atkinson & Co. managing partner. "We have always believed that serving our clients is an opportunity to know them better. And, when we know clients better, we can align our services to contribute to their growth and profitability." As one of the largest New Mexico-owned public accounting and consulting firms serving the Southwest since 1970, Atkinson & Co. has earned a reputation for quality, reliability, and personal service. The firm has a long-standing tradition of community involvement. Atkinson & Co. earned distinction for its workplace policies by Family Friendly New Mexico, a statewide project developed to recognize companies that have adopted policies that give New Mexico businesses an edge in recruiting and retaining the best employees.
    "I see a great fit between our firms," said Georgie Ortiz, managing principal of CLA's New Mexico office. "By blending our capabilities, we continue to strengthen our commitment to create opportunities for our clients and for our people."
    As one of the nation's leading professional services firms, CLA has retained the agility to serve clients of all sizes and in all locations, while at the same time bringing an uncommon depth of capabilities, all in one place. The nearly 50 former Atkinson & Co. team members will continue to serve clients locally and nationally from Albuquerque, increasing CLA's New Mexico team to more than 100 people. About CLA -
    www.claconnect.com CLA exists to create opportunities for our clients, our people, and our communities through industry-focused wealth advisory, outsourcing, audit, tax, and consulting services. With more than 6,200 people, 120 U.S. locations and a global affiliation, we promise to know you and help you. Investment advisory services are offered through C!iftonLarsonA!len Wealth Advisors, LLC, an SEC-registered investment advisor." target="_blank">Albuquerque-Based Atkinson & Co. Joins CLA

    12/1/2020 - CICPAC member firm, Albuquerque-based Atkinson & Co., has joined national professional services firm CLA (CliftonLarsonAllen LLP), as of December 1, 2020. "We're excited [...]

    By |2020-12-08T18:14:17-05:00December 8th, 2020|Announcements, CICPAC, Member News|

    ealvarez@hcoadvisors.com. [fusion_button link="https://www.hcoadvisors.com/" text_transform="" title="" target="_self" link_attributes="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" color="default" button_gradient_top_color="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" accent_color="" accent_hover_color="" type="" bevel_color="" border_width="" border_radius="" border_color="" border_hover_color="" size="" stretch="default" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]Visit H&Co's Website[/fusion_button][/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">E.F. Alvarez Merges with H&Co. Advisors

    EFA, CPAs (Miami, FL), led by long-time CICPAC member and industry leader Emilio Alvarez, has announced it's late 2019 merger with H&Co. Global Advisors. [...]

    By |2021-02-24T13:23:29-05:00February 2nd, 2020|Announcements, CICPAC, Member News|

    We are excited to welcome, Jennifer Miloszewski, CPA, Director with Blue & Co. (Lexington, KY) to the CICPAC family.

    Blue is a Top 60 CPA firm in the US, with 450+ employees and 10 offices in three states! Their construction practice serves more than 400 privately-held companies. They are actively involved in ABC, AGC, CFMA and other state organizations, as well as Surety associations in KY, IN and OH.

    The company's clients include:

    [/fusion_text][fusion_builder_row_inner][fusion_builder_column_inner type="1_2" spacing="" center_content="no" hover_type="none" link="" target="_self" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" border_size="0" border_color="" border_style="solid" border_position="all" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" padding="" dimension_margin="" background_type="single" background_color="" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_image="" background_position="left top" background_repeat="no-repeat" background_blend_mode="none" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" filter_type="regular" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" last="no"][fusion_checklist icon="" iconcolor="" circle="" circlecolor="" size="" divider="" divider_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id=""][fusion_li_item icon=""]

    Commercial, institutional, and industrial building construction

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    Drywall and insulation contractors

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    Electrical contractors

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    General contractors and specialty subcontractors

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    Heavy and civil engineering construction

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    Highway, street, and bridge construction

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    Residential housing construction and remodeling

    [/fusion_li_item][fusion_li_item icon=""]

    Masonry contractors

    [/fusion_li_item][/fusion_checklist][/fusion_builder_column_inner][fusion_builder_column_inner type="1_2" spacing="" center_content="no" hover_type="none" link="" target="_self" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" border_size="0" border_color="" border_style="solid" border_position="all" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" padding="" dimension_margin="" background_type="single" background_color="" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_image="" background_position="left top" background_repeat="no-repeat" background_blend_mode="none" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" filter_type="regular" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" last="no"][fusion_checklist icon="" iconcolor="" circle="" circlecolor="" size="" divider="" divider_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id=""][fusion_li_item icon=""]

    Plumbing, heating, and air conditioning contractors

    [/fusion_li_item][fusion_li_item icon=""]

    Poured concrete foundation and structure contractors

    [/fusion_li_item][fusion_li_item icon=""]

    Real estate companies and developers

    [/fusion_li_item][fusion_li_item icon=""]

    Roofing contractors

    [/fusion_li_item][fusion_li_item icon=""]

    Site preparation contractors

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    Structural steel and precast concrete contractors

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    Water and sewer line construction

    [/fusion_li_item][/fusion_checklist][/fusion_builder_column_inner][/fusion_builder_row_inner][fusion_button link="https://www.blueandco.com/industries/construction/" text_transform="" title="" target="_self" link_attributes="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" color="default" button_gradient_top_color="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" accent_color="" accent_hover_color="" type="" bevel_color="" border_width="" border_radius="" border_color="" border_hover_color="" size="" stretch="default" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]Learn More about Blue[/fusion_button][fusion_separator style_type="none" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="" top_margin="15pt" bottom_margin="15pt" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">Blue and Co. (Lexington, KY) Joins CICPAC

    We are excited to welcome, Jennifer Miloszewski, CPA, Director with Blue & Co. (Lexington, KY) to the CICPAC family.Blue is a Top 60 CPA [...]

    By |2020-01-29T21:20:50-05:00January 29th, 2020|Announcements, CICPAC, Member News|
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