Cbiz, Inc. · NYSE:CBZ
Cbiz — Investor Presentation (May 2012)
48 slides from Cbiz's investor presentation, May 29, 2012
Slide 1: Energy Incentives That Can Show You the Money
Energy Incentives That Can Show You the Money Presented by Michael Silvio, CPA Managing Director, CBIZ MHM, LLC.
Slide 2: Michael Silvio, CPA
Michael Silvio, CPA Michael Silvio is Managing Director with CBIZ MHM, LLC. He leads the San Diego and Orange County offices’ Research & Development (R&D) and Energy Incentives Tax Credit Services Group. Michael has more than 20 years of experience in public accounting and tax and has served a varie
Slide 3: Tax advice disclaimer
• As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal or state tax advice contained in this presentation, including charts or graphs, etc., is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any
Slide 4: Agenda
Agenda • Federal Credits Available In 2011 Tax Year – Automobile and Transportation – Federal Alternative Fuels Credits – Federal Production Credits – Federal Miscellaneous Benefits • Federal Expired Provisions • Federal Section 179D Epact Deduction • Legislative Update • Summary/Key Takeaways 4
Slide 5: Energy Incentives: An Overview
Energy Incentives: An Overview • Energy Conservation, Global Warming, Pollution, Alternate Fuels: no matter where you stand on these issues, the Green Movement is firmly entrenched in the majority of business plans • Businesses should consider the federal tax incentives available in the IRC in the f
Slide 6: Automobile and Transportation
Automobile and Transportation 6 6
Slide 7: IRC §30 Plug-In Electric Vehicles Credit
IRC §30 Plug-In Electric Vehicles Credit • The credit amount generally equals 10% of the cost of any qualified plug-in electric vehicle. • The credit is capped at $2,500. • Only for vehicles placed in service before January 1st, 2012. • The credit may be claimed on Form 8834, “Qualified Electric and
Slide 8: IRC §30B(b) Fuel Cell Motor Vehicles Credit
IRC §30B(b) Fuel Cell Motor Vehicles Credit • Base amounts of $4,000-$40,000, depending on the vehicle’s gross vehicle weight rating (minimum benefit below 8,501 lbs.; maximum over 26,000 lbs.) and date placed in service. • Additional increases of $1,000-$4,000, depending on the city fuel economy ov
Slide 9: IRC §30C Alternative Fuel Vehicle Refueling Property Credit
IRC §30C Alternative Fuel Vehicle Refueling Property Credit • For non-hydrogen property, the credit amount equals 50% of the cost (30% for hydrogen property) of qualified alternative fuel vehicle refueling property. The credit amount for non-hydrogen property decreases to 30% for property placed in
Slide 10: DOE Advanced Technology Vehicles Manufacturing Incentive Program
DOE Advanced Technology Vehicles Manufacturing Incentive Program • Up to $25 billion in loans authorized • 10% of loans are set aside for small automobile and component manufacturers • Loans authorized through fiscal 2012 • Facilities and equipment must be placed in service before December 30, 2020.
Slide 11: Federal Alternative Fuels Credits
Federal Alternative Fuels Credits 11
Slide 12: IRC §40 Alcohol Fuels Credit
IRC §40 Alcohol Fuels Credit • The Alcohol Fuels Credit is the sum of the following credits: – Alcohol Mixture Credit: $0.60 per gallon of alcohol ($0.40 for alcohol with a proof less than 190) used with another substance in the production of a fuel sold or used by the taxpayer. – Alcohol Credit: $0
Slide 13: IRC §40A Biodiesel and Renewable Diesel Used as Fuel Credit
IRC §40A Biodiesel and Renewable Diesel Used as Fuel Credit • The Biodiesel Fuels Credit is the sum of the following credits: – Biodiesel Mixture Credit: $1.00 per gallon of biodiesel used in combination with diesel fuel in the production of a fuel sold or used by the taxpayer. – Biodiesel Credit: $
Slide 14: IRC §45Q Carbon Dioxide Sequestration Credit
IRC §45Q Carbon Dioxide Sequestration Credit • The credit amount is equal to the sum of: – $ 20 per metric ton of qualified carbon dioxide that is: • Captured by the taxpayer at a qualified facility, and • Disposed of by the taxpayer in secure geological storage. – This amount is reduced to $10 per
Slide 15: Federal Production Credits
Federal Production Credits 15
Slide 16: IRC §45 Electricity Produced from Renewable Resources Credit
IRC §45 Electricity Produced from Renewable Resources Credit • For energy produced or sold, the credit amount equals $1.5 cents x an inflation adjustment factor (IAF) (2.2 cents in 2011 and 2012) for every kWh of electricity that is either: – Produced by the taxpayer from qualified energy resources
Slide 17: IRC §45 Credit; IRC §45J Advanced Nuclear Power Credit
IRC §45 Electricity Produced from Renewable Resources Credit • Open Loop: agricultural livestock (bovine, poultry, sheep) waste-manure-solid non-hazardous, cellulosic waste, also forest resources • Closed loop: organic matter of a plant that is planted for the sole purpose of being used to produce e
Slide 18: IRC §48 Energy Investment Credit
IRC §48 Energy Investment Credit • The credit amount is equal to 30% of the taxpayer’s basis (10% for geothermal) in: – Qualified fuel cell property. This portion is capped at $1,500. – Qualified energy property. – Qualified small wind energy property. • Only for property placed in service before Ja
Slide 19: IRC §48 Grant in Lieu of Energy Credit
IRC §48 Grant in Lieu of Energy Credit • The grant amount is equal to 30% of the qualified investment in a qualifying advanced energy project. – Qualifying advanced energy projects are those that re-equip, expand, or establish a manufacturing facility for the production of: – Property used to produc
Slide 20: Federal Miscellaneous Benefits
Federal Miscellaneous Benefits 20
Slide 21: IRC §168(e) and 169 Special Depreciation and Amortization Benefits
IRC §168(e) and 169 Special Depreciation and Amortization Benefits • Under IRC §168(e), the recovery period for qualified “smart” electric meters and grid systems is reduced from 20 years to 10 years. • Under IRC §169, pollution control facilities may be amortized over 60 months. • Depreciation of b
Slide 22: Non-Business Credits
NON-BUSINESS CREDITS • IRC §25C: Non‐business Energy Property Credit – Credit amount of 30% of cost of qualified energy property. – Capped at $1,500. – Through December 31, 2010 – Includes: water heaters, exterior windows and doors, metal roofing, geothermal heat pumps- HVAC • IRC §25D: Residential
Slide 23: Federal Expired Provisions
Federal Expired Provisions (For Tax Year 2011 and Beyond) 23
Slide 24: IRC §30B(c) Lean Burn Technology Motor Vehicles Credit
IRC §30B(c) Lean Burn Technology Motor Vehicles Credit –expired as of January 1, 2011 • Fuel economy benefits of $400-$2,400, depending on the city fuel economy over the 2002 model (minimum benefit at 125%; maximum at 250%). • Additional conservation benefits of $250-1,000, depending on the lifetime
Slide 25: IRC §30B(d) Hybrid Motor Vehicles Credit
IRC §30B(d) Hybrid Motor Vehicles Credit-expired as of January 1, 2011 • For vehicles with a gross vehicle weight rating up to 8,500 pounds, the credit is calculated in the same manner as the credit for Lean Burn Technology Motor Vehicles. • For vehicles with a gross vehicle weight rating over 8,500
Slide 26: IRC §30B(e) Alternative Fuel Motor Vehicles Credit
IRC §30B(e) Alternative Fuel Motor Vehicles Credit-expired as of January 1, 2011 • For non-mixed-fuel vehicles, the credit amount equals 50% (80% if the vehicle meets certain standards) of the cost of the vehicle less the cost of a gas/diesel vehicle of the same model (this cost difference is capped
Slide 27: IRC §48A Advanced Coal Project Credit
IRC §48A Advanced Coal Project Credit (Clean Burning Coal Property)-expired March 12, 2012 • The credit amount is equal to the sum of: – 20% of the qualified investment in integrated gasification combined cycle projects with application submitted between March 13th, 2006, and March 13th, 2009. – 15%
Slide 28: IRC §48B Gasification Project
IRC §48B Gasification Project-expired March 12, 2012 • The credit amount is equal to 20% of the taxpayer’s basis in eligible property that is part of a qualifying gasification project that is either: – Constructed, reconstructed, or erected by the taxpayer, or – Acquired by the taxpayer if the origi
Slide 29: IRC §48C Advanced Energy Project Credit
IRC §48C Advanced Energy Project Credit • The credit amount is equal to 30% of the qualified investment in a qualifying advanced energy project. – Qualifying advanced energy projects are those that re-equip, expand, or establish a manufacturing facility for the production of: – Property used to prod
Slide 30: §179D Energy Policy Act of 2005 (EPAct) Deductions
§179D Energy Policy Act of 2005 (EPAct) Deductions 30
Slide 31: Topics: EPAct (Section 179D)
Topics EPAct (Section 179D) Available for Energy Efficient Building Projects: • Lighting • HVAC • Building Envelope 31
Slide 32: Commercial Building Owners / Primary Designers of Government Buildings
Commercial Building Owners Primary Designers of Government Buildings •Retailers •Architects •Industrial Buildings •Engineers •Warehouses •Lighting Designers •Office Buildings •Design & Build Firms 32
Slide 33: Energy Policy Act of 2005 (EPAct)
Energy Policy Act of 2005 (EPAct) Incentivized areas: – Lighting – HVAC – Building envelope Available for New Construction and Existing Buildings Also available for: – Tenant owned lease-hold improvements – Rental Apartment Buildings 4 stories or above – Primary Designers of Government Buildings 33
Slide 34: Property Types
Property Types Property Reasons Retailers •Energy is a major cost •Centralized facilities’ management Distribution Centers •Major growth market •High economic return Hotels •Meet ASHRAE 2004=Full EPAct •Bi-level not required in guest rooms Parking Garages •Large facilities drive large EPAct benefits
Slide 35: What's It Worth?
What’s It Worth? Square Lighting Lighting HVAC Building Total Footage Minimum Maximum Maximum Envelope Maximum Deduction Deduction Deduction Maximum $1.80/sq.ft. $.30/sq.ft. $.60/sq.ft. $.60/sq.ft Deduction $.60/sq.ft. 50,000 $15,000 $30,000 $30,000 $30,000 $90,000 100,000 $30,000 $60,000 $60,000 $6
Slide 36: Government Building Immediate Deductions
Government Building Immediate Deductions Architects/Engineers/Lighting Designers • DOE goal to incentivize green design in government building sector • Benefits passed through to the primary designer of: – Federal offices, military bases, court houses, post office, labs etc. – State offices, transpo
Slide 37: How Do You Qualify? Mechanics
How Do You Qualify? Mechanics • Deductions based on improvements over ASHRAE 90.1 2001 • Energy efficient improvements must be depreciable assets -Converts 39 year depreciation to current deduction • Available for installations completed 1/1/2006 through 12/31/2013 • Deduction amounts: Lesser of tot
Slide 38: Interim Lighting Rules
Interim Lighting Rules 2001 25% 40% Standard Improvement Improvement • Meet W/ft2 targets LPD, • Additional requirements W/ft2 -Bi-level Switching Office 1.3 0.975 0.78 -Meet ASHRAE 90.1 Manufacturing 2.2 1.65 1.32 requirements -Meet IESNA School/Library 1.5 1.125 0.90 minimum light levels Retail 1.
Slide 39: Understanding Lighting Technology
Understanding Lighting Technology • Today’s products use 40% to 60% less energy • Our Government and Utilities want reduced energy use • T-12 lighting will be illegal to Manufacture (7/1/2010) • Metal Halide to Fluorescent is most Common Change out 39
Slide 40: Data Requirements for New Construction and Retrofit
New Construction Data Requirements • Project general information • Square footage • Lighting projects -CAD drawings (.dwg or .dwf), Architectural & Electrical sets -Fixture schedule Retrofit Lighting Data Requirements • Project general information • Square footage of each space • Bi-level lighting c
Slide 41: Energy Modeling required for HVAC & Envelope
Energy “Modeling” required for HVAC & Envelope HVAC and Building Envelope – Modeling required (IRS Approved) – No partial deductions – Almost exclusively new construction and • Geothermal • Thermal Storage • LEED (Leadership in Energy & Environmental Design) certified 41
Slide 42: Understanding Energy Models
Understanding Energy Models • IRS has approved ten types of modeling software – Trane Trace 700, Energy Plus, Carrier HAP, VisualDOE, EnergyGauge, DOE2.1E & 2.1E- JJH, Owens Corning Commercial Energy Calculator, Green Building Studio, EnerSim – Other submissions are in process • Important modern Ene
Slide 43: Legislative Update
Legislative Update • On May 24th, President Obama called for Congress to act immediately on clean energy incentives • Congress unlikely to do anything until after election • Obama called for extension of expiring electricity production tax credit (IRC §45) and increased funding for American Recovery
Slide 44: Summary/Key Takeaways
Summary/Key Takeaways General Takeaways • For calendar or fiscal year tax returns that incorporate the period ending December 31, 2011, be sure and review what energy incentive are available based upon expiration dates • Utilize existing energy credit/incentive provisions to enhance your business or
Slide 45: Questions?
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Slide 46: CBIZ MHM, LLC Contacts
CBIZ MHM, LLC Contacts Michael Silvio Managing Director 949.727.1322 [email protected]
Slide 47: Upcoming Webinars
Upcoming Webinars To view other upcoming CBIZ MHM webinars, please click here. 47 47
Slide 48: Thank You
Thank You A our business is growing VOUS May CBIZ fi MHM or joffman