Maintaining profits and keeping jobs on track is not easy in the construction industry. There are bills to pay, materials to order, teams to manage, and everything else in between. That’s why you need accurate, real-time Work in Progress (WIP) reports to keep projects running smoothly—and to grow your
bottom-line profit.

So, how does it all work? We’ll deep-dive into all there is to know about WIP reporting and how you can set your projects and business up for success.

In this white paper from Deltek ComputerEase, explore:

  • Whta is Work in Progress
  • Overbilling Versus Underbilling
  • What Should a WIP Report Include?
  • How Often Should You Run a WIP Report?
  • Automation of Work in Progress
  • How to Create an Accurate WIP Report
  • What steps do you need to take to achieve accurate WIP Reporting?
  • Common WIP Report Mistakes to Avoid
  • How to Compare and Analyze WIP Report from Different Time Periods
  • How Construction  Accounting Software Can Help
[/fusion_text][fusion_button link="" title="" target="_blank" link_attributes="" alignment_medium="" alignment_small="" alignment="center" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" sticky_display="normal,sticky" class="" id="" color="default" button_gradient_top_color="" hue="" saturation="" lightness="" alpha="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" gradient_start_position="" gradient_end_position="" gradient_type="" radial_direction="" linear_angle="180" accent_color="" accent_hover_color="" type="" bevel_color="" bevel_color_hover="" border_top="" border_right="" border_bottom="" border_left="" border_radius_top_left="" border_radius_top_right="" border_radius_bottom_right="" border_radius_bottom_left="" border_color="" border_hover_color="" size="" padding_top="" padding_right="" padding_bottom="" padding_left="" fusion_font_family_button_font="" fusion_font_variant_button_font="" font_size="" line_height="" letter_spacing="" text_transform="" stretch="default" margin_top="" margin_right="" margin_bottom="" margin_left="" icon="" icon_position="left" icon_divider="no" hover_transition="none" animation_type="" animation_direction="left" animation_color="" animation_speed="0.3" animation_delay="0" animation_offset=""]Download White Paper[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">How Work in Progress (WIP) Can Work for You

Maintaining profits and keeping jobs on track is not easy in the construction industry. There are bills to pay, materials to order, teams to manage, [...]

By |2023-07-25T15:46:34-05:00March 28th, 2023|AM Whitepaper, CICPAC|

Written by Dave McGuire, Shareholder, McGuire Sponsel The Energy Policy Act of 2005 established certain incentives for building energy efficient buildings. These included the 45L tax credit for the construction of energy efficient single-family homes, and the 179D deduction for the construction of other energy efficient properties. Since 2005, very little has changed with these provisions other than extensions to allow businesses to continue to benefit from these tax provisions. In 2022, the Inflation Reduction Act (IRA) drastically changed not only the amount of these benefits, but also some of the underlying calculations associated with the incentives. To understand the changes to 179D, let’s first start with the rules prior to the IRA. Prior to the IRA companies building energy efficient buildings were allowed a deduction of up to $1.80/sf (adjusted for inflation). To take this deduction, the building was compared to the ASHRAE 90.1-2007 standard, if the building reduced the energy consumption by 50 percent as compared to the standard a company was allowed a full deduction. Additionally partial deductions of $0.60/sf were allowed for reductions in energy consumption across the building envelope, lighting system, or mechanical systems. Finally in the case of government owned buildings that qualified, the government agency could transfer the deduction to the designer “primarily responsible for the energy efficient design.” This means architects and engineers designing government buildings were also eligible for this deduction. The IRA changed this deduction in three ways. First it changes the calculation. Instead of partial deductions for each building system the deduction is changed to a calculation based on reducing the energy consumption of the building by at least 25 percent. The new law also increases the ability to transfer the deduction. Now in addition to government buildings having the ability to transfer the deduction to the designer, the ability has also been provided to tax-exempt organizations. This means private colleges, churches, and other tax-exempt entities can transfer the deduction to the person responsible for the energy efficient design. Finally, the amount of the deduction is changed from $1.80/sf to a sliding scale from $0.50/sf to $1.00/sf. Many people may understand the change to the amount of the deduction above and be confused as many of the bill’s proponents have touted that it increases the amount of the deduction. That is because the bill introduces a concept where deductions and credits are increased if the company involved pays “prevailing wages”. Under this rule, if a company pays the prevailing wages detailed on the website, they can multiply their deduction by 500 percent. This means that if prevailing wage requirements are met the deduction amount goes up to $2.50 to $5.00/sf. However, for many businesses the prevailing wage requirements may be hard to meet as it applies to all contractors working on the property, this would include painters, landscapers, and other unskilled trades. The other real estate related tax incentive included in this bill is an extension and change to the 45L tax credit. The 45L tax credit had expired at the end of 2021, but this law extends the existing tax credit through 2022 and modifies it for years 2023 through 2032. The existing law, in place through the end of 2022, allows for a $2,000 per unit tax credit for the construction of low-rise residential construction. This includes new homes, apartments, and even assisted living facilities if they are three stories or less above grade. To take this credit, the home had to be 50 percent more efficient than the International Energy Conservation Code (IECC). Starting in 2023, the 45L credit changes drastically. First, instead of being tied to the IECC code, the credit is now tied to Energy Star. Second the credit amount is now adjusted as follows:
  • Single Family Homes Meeting Energy Star Single Family Home Standard - $2,500
  • Single Family Homes Certified as Zero Energy Ready - $5,000
  • Multifamily Homes meeting Energy Star Multifamily New Construction - $500*
  • Multifamily Homes meeting Energy Star Zero Energy Ready Multifamily - $1000*

*Multifamily homes receive a 500% increase if prevailing wage requirements are met

The new requirement to tie the credit to energy star raises many questions. First it relates to the three-story requirement. Under the old rules, homes were limited at three stories or less above grade, this was based on the standards under the IECC code. Energy Star does not have the same three-story limitation; however, they do split multifamily into multifamily high rise, midrise, and low rise. The IRS has still not confirmed if the three-story limitation still applies. The bigger issue with energy star is that it cannot be done after the fact based on the current standards. Under the old rules most developers would complete a project, then ask a 45L certification company to confirm the benefit. However, energy star requires that the contractor be working within the energy star requirements from the beginning. This may exclude developers from taking the deduction until they work to become energy star certified. Finally, the limitation of $500 for multifamily when prevailing wages are not met, may limit the applicability to many companies, as the cost to certify and claim the credit may outstrip the benefit. As evidenced above the changes to 179D and 45L are significant and confusing. It is critical that taxpayers talk to professionals who are versed in these changes to ensure that they have access to the deductions and credits moving forward. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">How the Inflation Reduction Act of 2022 Changed and Modified 179D and 45L

Written by Dave McGuire, Shareholder, McGuire Sponsel The Energy Policy Act of 2005 established certain incentives for building energy efficient buildings. These included the [...]

By |2023-02-28T08:02:48-05:00February 22nd, 2023|AM Whitepaper, CICPAC|

Alexander Bagne, CPA, JD, MBA, CCSP is the President of ICS Tax, LLC, and an expert in tax planning strategies for real estate investors, architecture and engineering firms, and others within the construction industry. He is a strong proponent of energy efficient construction and has served as the President of the American Society of Cost Segregation Professionals (ASCSP). This article was re-published from ‘The Inflation Reduction Act Significantly Changes the 179D Energy Efficient Commercial Building Deduction’" target="_blank">Section 179D Energy Efficient Commercial Building Deduction

The Section 179D Energy Efficient Commercial Building Deduction provides a deduction of up to $1.88 per square foot for both building owners who construct new [...]

By |2023-02-22T16:10:47-05:00September 19th, 2022|AM Whitepaper, CICPAC, Construction|

The Inflation Reduction Act of 2022, H.R. 5376, signed by President Biden on August 16, 2022, extended the 45L credit for homes sold or leased during 2022 with little modification. Thus, residences sold or leased in 2022 would qualify for the 45L credit using the 2021 energy efficiency standards. However, from January 1, 2023 through December 31, 2032, the Act significantly changes the 45L Energy Efficient Home Credit with new provisions and requirements. Beginning in 2023, the Act provides an increased 45L tax credit of $2,500 for single family and manufactured homes when constructed according to the standards set by the ENERGY STAR Residential New Construction Program or the Manufactured Homes Program.
  • Single-family homes must meet the ENERGY STAR Single Family New Homes Program, Version 3.1 for homes constructed before January 1, 2025 and Version 3.2 thereafter.
  • Manufactured homes must meet the latest ENERGY STAR Manufactured Home National Program requirements as in effect on the latter of January 1, 2023 or January 1 of two calendar years prior to the date the dwelling is acquired.
The Act also provides an even higher 45L tax credit of $5,000 for single family and manufactured homes when they are certified as a DOE Zero Energy Ready Home (ZERH). For multifamily homes constructed after 2022, the Act provides a 45L tax credit of $500 when meeting the ENERGY STAR Single Family New Homes Program or $1,000 when meeting the DOE Zero Energy Ready Home requirements. If prevailing wage requirements are also satisfied, the credit for multifamily homes increases to $2,500 or $5,000, respectively. The table below summarizes the 45L Credit rules beginning in 2023.
Home TypeQualification RequirementPrevailing Wage RequirementCredit Amount
Single Family*EnergyStarNo$2,500
Single Family*ZERHNo$5,000
Manufactured HomeEnergyStarNo$2,500
Manufactured HomeZERHNo$5,000
*Single Family includes site-built and modular single family homes, duplexes and townhomes.
The Inflation Reduction Act of 2022 has certainly raised the standards for energy efficient home construction with a persuasive tax credit for the next ten years.
This article was re-published from ‘The Inflation Reduction Act: Impact on §45L Tax Credit’

About the Author:

Alexander Bagne, CPA, JD, MBA, CCSP is the President of ICS Tax, LLC and an expert in tax planning strategies for real estate investors and developers. He is a proponent of energy efficient construction and has served as the President of the American Society of Cost Segregation Professionals (ASCSP).
" target="_blank">The Inflation Reduction Act: Impact on §45L Tax Credit

Internal Revenue Code Section 45L provides both single and multifamily homebuilders with a $2,000 tax credit for meeting certain energy saving requirements. However, the 45L [...]

By |2023-02-22T16:10:56-05:00August 19th, 2022|AM Whitepaper, CICPAC, Construction|

construction accounting that will help increase job profitability, manage cash flow, and successfully grow your business.


At the end of each day, a contractor needs to use job costing to allocate the cost of equipment, tools, and other assets used on a job (e.g., the cost of owning, operating, and maintaining that asset) to keep score of their jobs and business overall. Any easy way to do this is through a robust construction accounting software solution, such as Deltek + ComputerEase.


Costs already committed for subcontractors and materials should be tracked in real-time to maintain control over a job and keep it profitable. You will know, with certainty, the budget you have available for future expenses and/or additional costs. Some examples of committed costs include an open subcontractor agreement, purchase orders, time from the field, and expenses from the field.


Markup is the difference between the cost of materials or services and the price charged. Margin is the gross profit on a job and is a percentage of the sales price. Mistaking the two terms may cause you to set a price too high or too low, which can result in losing profits and potentially, business.


If you’ve spent half your budget that does not necessarily mean you have done half the work. You may have done only 40% of the work, or maybe 60% of the work. Understanding and tracking percentage spent and percentage of completion through your WIP reports allows you to come in under budget.


WIP reports are one of the most important reports for a contractor because they provide a detailed schedule on completed work and in-progress work for a certain period of time. With frequent WIP reports, you can manage work and profit proactively using actual job data as opposed to being reactive to problems that arise. This helps you stay ahead of the game and grow your bottom-line profits. The commonly used WIP methods include units complete, percent complete, and cost-to-finish. WIP reports also identify underbilling and overbilling amounts. The accounting staff must enter these amounts on the P&L Statement and Balance Sheet to get an accurate financial picture.


Overbilling occurs when a contractor bills ahead of work completed. If managed properly, overbilling can positively affect cash flow. If unmanaged, it can be problematic because contractors will not have the available cash to fund the remaining work. For example, if you overbill by $10,000, that is not a cash profit that you can spend. That amount should be recognized as payment for work that has not yet been completed.


Change orders are a product of changing the scope of the initial contract. To successfully manage your change orders, it is important to provide contracts that are detailed and easy-to-understand, introduce the change order process in the initial contract (and negotiate pricing and markups for change orders), and establish the structured process for change requests, both with the client and your internal team. Since change orders occur so often in the construction industry, creating change order templates for customers and exploring construction accounting software tools will save you time, rather than manually creating change orders at the time they are needed.


Standard accounting software lacks the ability to track unposted construction payroll. However, monitoring these costs in real-time with a project management software allows you to manage costs proactively by seeing the effect of employee hours on the budget without actually processing payroll.


You want workers to turn in their time at the end of each day, not the next day, not a week later. Tracking things as they happen with remote field-to-office tools, like the Deltek + ComputerEase mobile app, makes them more accurate and you don’t have to return to the office to do this.


The unique accounting requirements a contractor is faced with almost always call for a CPA that specializes in construction. Choosing the right Certified Public Accountant (CPA) is a critical step to building out your trusted advisor team and can be a major contribution to business growth. Locate a CICPAC member firm near you." target="_blank">10 Key Construction Accounting Best Practices for Contractors

Construction accounting is complex and mistakes are inevitable. That’s because construction accounting, compared to regular accounting, has unique requirements, processes, documents, and procedures, such as [...]

By |2023-03-28T16:40:33-05:00August 15th, 2022|AM Whitepaper, CICPAC, Construction|

prevailing wage is typically based on the wages paid to workers on similar projects in the area. The act was intended to avoid situations where contractors would low-ball their proposed costs on a project at the expense of their workers’ wages. There are several states that have their own prevailing wage laws, known as “little Davis-Bacon” acts, for any state-funded construction projects and do, in some cases, extend to projects at the local and municipalities level as well.

So prevailing wage is basically a worker’s hourly wage?

Yes and no. Prevailing wage comprises two parts: The first is the basic hourly rate paid to each worker. The second is what is known as the “fringe benefits” amount. Fringe benefits include a separate per-hour dollar amount paid out as part of a worker’s wages or used to fund a “bona fide” benefits plan, such as a 401(k), life and health insurance, vacation, and holiday pay, or even apprenticeship training programs. Simply put, if a worker’s base pay on a project was $30 an hour and the fringe benefits amount was $10 an hour, the contractor can pay out the $10 in fringe benefits as wages, essentially increasing the worker’s hourly pay to $40, or they can elect to put that $10 into a benefits plan for their employee.

So, which is better — cash or a bona fide benefits plan?

Many contractors pay out the mandatory fringe benefit as wages because it’s the easiest way to comply with the law. While that may be true, it’s also much more costly to the contractor. And the reason is pretty simple: all wages paid to employees are subject to payroll taxes, such as social security taxes, federal and state unemployment taxes, workers’ compensation insurance, and general liability insurance. The rate varies, but it is estimated that the additional cost to the contractor for these payroll taxes is roughly 25 cents for every dollar paid in wages. On the other hand, if a contractor uses those fringe dollars to fund a “bona fide” benefits plan for their employees, that money would be exempt from all payroll taxes. Thus saving the contractor tens of thousands, maybe even hundreds of thousands, of dollars a year. Don’t believe me? Here’s an example: Let’s say Contractor A has 25 employees working on a prevailing wage job that will last six months. Each employee works approximately 500 hours during this time, and the fringe amount is roughly $10 an hour. 25 (employees) x 500 hours = 12,500 hours 12,500 (hours) x $10 fringe benefit dollars = $125,000 fringe benefit dollars If Contractor A decides to pay out that $125,000 fringe benefit as wages to their employees, they will be hit with a 25% payroll tax on every single one of those dollars. $125,000 x 25% in payroll taxes = $31,250 in additional payroll taxes If Contractor A elects to put those fringe benefit dollars into a “bona fide” benefits plan for her employees, such as a 401(k) retirement account, not a single dollar would be subject to payroll taxes. That means $31,250 in savings, which can be used later to make more competitive bids for future projects. Using these fringe dollars properly also allows a contractor to implement or improve their existing benefit programs in a few ways:
  1. For those employers who offer a 401(k), paying the fringes as cash means funding the benefits in duplicity, as these payments are paid out of the operational account of the business. Using these fringe dollars to an employer and employee’s advantage can reduce that extra expense considerably.
  2. In today’s tight labor market, employees look at total compensation packages, including benefits like a 401(k). These fringe dollars can assist companies with bolstering their current programs by offering better benefit coverages or adding additional benefit options for their employees.
  3. Employers can improve their 401(k) plan by using fringe dollars to offset or meet matching requirements they may choose to include. This includes discretionary employer match, safe harbor, or profit-sharing contributions to the plan. Contractors often hesitate to include matching contributions to their retirement plan due to the costs. Utilizing the prevailing wage dollars to meet a portion of these contributions allows you to offer more retirement benefits to all your employees at a reduced cost to the company.
Required annual compliance testing for all 401(k) plans can be extremely complicated and are put into place to ensure that all participants benefit equally from the plan. When working with a plan administrator specializing in designing retirement plans for prevailing wage contractors, you can be confident that you are staying compliant and offering the best solution for all your employees and the company owners. In the end, when utilized correctly, prevailing wage — comprised of a per-hour cash wage and a per-hour benefits wage – is a significant benefit to both the laborers and contractors working on publicly-funded construction projects. Prevailing wage benefits isn’t easy business. For over 35 years, Beneco has focused exclusively on serving the unique needs of contractors through retirement plans, health care benefits, compliance services, and HR solutions and has a level of expertise in prevailing wage that few can offer.  " target="_blank">Maximize Prevailing Wage Dollars with an Employer Sponsored 401(k) Plan

Prevailing wage was established under federal law by the Davis-Bacon Act of 1931. The act mandates that contractors and subcontractors pay their workers an hourly [...]

By |2023-05-02T10:45:58-05:00July 18th, 2022|AM Whitepaper, CICPAC, Construction|

David Seibel & Tanner Niehaus, McGuire Sponsel The R&D Tax Credit is one of the most subjective areas of the tax code and many businesses believe they qualify. With the IRS placing more scrutiny on the R&D Tax Credit, it is important to be aware of common myths of the credit as well as areas of exposure when building a claim. To dispel some of these misconceptions and provide clear guidance for CPA firms and businesses that may qualify for the R&D Credit, this blog explores the construction sector and what activities and business practices are eligible for R&D Credit inclusion. The construction sector and related industries hold many misconceptions as it relates to the R&D Credit. For firms that are directly or indirectly involved with construction, there are a number of considerations for each individual company to make when evaluating if it is appropriate to pursue a R&D Credit claim. One early factor to examine is whether the business bears the burden of engineering or design at any point during the project cycle. This can often determine whether a business is likely to be working on projects that satisfy the four-part test. This check does not guarantee a R&D Credit opportunity exists, but the lack of design responsibility typically suggests that a company will not meet §41 requirements. A technical risk assessment for a “typical” project or large specialty project would also be appropriate to determine if there are potentially qualified business components. For example, within the scope of a new construction project, the party that is responsible for developing the optimal building design including the detailed engineering is very likely to be conducting qualified research activities. This could also extend to contractors who are designing specific systems for the site. Conversely, a contractor or builder that is constructing from prints and is not responsible for the creation of any new design element or construction procedure is typically not conducting qualified research. While qualified employees do not have to be degreed scientists or engineers, a firm that has an engineering and/or design function is a good indicator of qualified research taking place. Market areas that are most likely to be conducting qualifying activities include architectural/engineering firms, specialty and design/build contractors, and manufacturers of new and unique construction products. Beyond assessing if a business bears the burden of design and if technical risk is present, determining if a taxpayer bears the economic risk of the design is necessary when preparing a R&D Credit claim. This requirement is related to the Funded Research Exclusion as set forth in §41(d)(4)(H). When a company is designing a custom building or solution for a client, the payment structure should generally be fixed-fee, lump-sum, or otherwise structured in a way that the business incurs the costs to resolve any failure to demonstrate the taxpayer is bearing the economic risk. The company must also retain significant rights to use the research without compensation to its client. In recent years an architectural design firm, Populous Holdings, successfully defended its R&D Credit claims against the Funded Research Exclusion in tax court. The court found that because the contract payment structures were fixed fee and Populous Holdings was paid for a “work product” requiring research to successfully complete, the Funded Research Exclusion did not apply and the claims were valid. Between determining who bears the technical risk and economic risk of a project, as well as who retains substantial rights to the research, it can often be difficult to determine if a construction company is eligible to claim the R&D Credit for a particular project. An assessment of a taxpayer’s design responsibilities, project contracts, and work performed should be carefully conducted to determine whether a construction firm is able to claim the R&D Credit." target="_blank">R&D Tax Credits for the Construction Industry

Submitted by: David Seibel & Tanner Niehaus, McGuire Sponsel The R&D Tax Credit is one of the most subjective areas of the tax code and [...]

By |2022-07-18T14:36:01-05:00June 22nd, 2022|CICPAC, Construction, Resources|

Harness Software (a Foundation Software Company) on Apr 01, 2021 Forget the horse and water; the saying should read: “You can lead a construction worker through a safety program, but you cannot make them follow it.” The goal of any safety program is to reduce incidents, but in order to achieve that, the employees must actually follow the program. This is a challenge for many construction companies. Safety risks and the incidents that follow take place on construction sites for one of three possible reasons: 1. They Don’t Know Employees who simply don’t know all the safety information are more timid around the tools and equipment and are more likely to make a mistake due to lack of training. This is especially true of new hires. 2. They Don’t Care More experienced employees who have been on the job for a while, who have yet to experience an incident, can become overconfident and feel invincible, often leading to very risky behavior on their part. 3. There’s a More Efficient Way The most experienced workers on site have likely gone through an incident or accident themselves and are less likely to take major risks but have also developed more efficient / less safe habits over the years, potentially leading to an incident. > Continue Reading   Sue Drummond knows that learning new technology can be intimidating and overwhelming sometimes. That's exactly why her role at Harness Software is to teach, guide and customize the fear away. Together with our clients, she sets project priorities, exchanges resources and shares best practices, all in an effort to achieve happier and healthier employees and safer job sites.   About Foundation SoftwareFoundation Software delivers job cost accounting, project management, estimating & takeoff, and safety software, along with payroll services, to help contractors run the business side of construction. For more information, call (800) 246-0800 or email" target="_blank">3 Safety Program Styles Compared: Incentive vs Behavior vs Discipline

Last Updated by Sue Drummond, Harness Software (a Foundation Software Company) on Apr 01, 2021 Forget the horse and water; the saying should read: “You [...]

By |2022-07-18T14:36:01-05:00June 20th, 2022|AM Whitepaper, CICPAC, Construction, Exclude Post, Member News|

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

By |2022-07-18T14:36:01-05:00April 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 |2022-07-18T14:36:01-05:00February 22nd, 2022|Announcements, CICPAC, Member News|
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