At OEO, we have consultants and licensed engineers able to provide building and property owners with the following energy-related consulting services.
Building Energy Performance Assessment
Research has shown that energy efficient buildings are more attractive to lenders, buyers and tenants. Consequently, the practice of benchmarking a building’s energy performance is becoming common and is actually required in all commercial and public real estate transactions in a number of jurisdictions and states. There is also talk that some are going to require all buildings be benchmarked annually and have the results made public.
The American Society of Testing Materials (ASTM) has developed standards for performing what they refer to as a Building Energy Performance Assessment (BEPA) which is quickly becoming the foundation for accurate and reliable building energy use data collection, compilation and analysis in the public and commercial property industry.
Regardless of government mandate, it is important to understand how the energy use in your buildings rates in comparison to others, especially if there are plans to sell, lease or borrow against them.
Our licensed energy consultants have the knowledge and experience needed to guide you through the benchmarking process and provide accurate, reliable BEPA or other benchmarking studies for the properties you own and/or manage.
EPAct 2009 Certification
In August 2005, the US Congress passed and the President signed into law House Bill 1331-6 which allows commercial building owners within the United States to take federal tax deductions of up to $1.80 per square foot for energy-reduction systems installed and implemented into those buildings. The act was set to expire on January 1, 2009, but was extended through December31, 2013.
To qualify for the tax credit, a licensed engineer must inspect and certify that energy modifications made to the building meet the minimum requirements as set forth in the law.
For those property owners considering energy-reduction modifications and have plans to claim the deduction, we strongly recommend an integrated solution by a single provider that will specify and pre-certify the modifications before they are made so as to ensure they qualify.
Our licensed energy consultants have the experience and qualifications needed to help you prepare the necessary support documents needed for making claims on either new energy-reduction modifications or previously made energy-reduction modifications made after 2007 that have not been claimed.
Cost Segregation Studies
Cost segregation is a cash flow improvement strategy that accelerates depreciation deductions to reduce or eliminate Federal and State income taxes. Although not commonly understood or used, cost segregation can be a valuable tax strategy for any taxpayer that owns, constructs, renovates or acquires real estate.
Cost segregation studies are an engineering-based approach to identifying assets within a building that can be reclassified into a much shorter depreciation class than the building itself. Doing so allows for accelerated depreciation of those reclassified assets resulting in higher cash flows.
To qualify, the property’s owner must be a taxable entity, the property must either be new construction or have been purchased or substantially renovated after 1986 and the property must be defined as property for a commercial investment purpose.
Our licensed energy consultants and engineers can work with your accountants to determine whether you might benefit form utilizing a cost segregation strategy and then prepare all necessary support documents required for implementing cost segregation strategies.
Energy Procurement
Many states have deregulated the energy industry to encourage competition in the generation of electricity and gas. For consumers in those states, deregulation means that they have options for purchasing the generating component of their energy needs from sources other than the traditional utilities. While the advantages of doing so are obvious, there are dangers that may not be so obvious.
Our licensed energy consultants have the qualifications and experience needed to find and negotiate an energy package that best fits your needs while protecting you against the obscure dangers that can exist within deregulated energy markets.