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Managing Partner's Message
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Believing uncertain times breed innovation, Bedford has been busy creating new initiatives for our clients. Given the myriad of uncertainties in the financial markets, especially the real estate market, Bedford has focused on our efficiency and process improvement without sacrificing quality. Nothing highlights this commitment to quality and our core business more than our dedicated participation in the American Society of Cost Segregation Professionals (ASCSP). We are very proud to have five Certified Cost Segregation Professionals (CCSPs) on staff. The CCSP designation is the highest level of certification available through the ASCSP.
We have spent a great deal of time over the last year developing bundled services with our Cost Segregation practice to enhance the Bedford offerings while staying focused on driving tax savings and cash flow enhancements for our clients.
With the departure of Bonus Depreciation, there is a constant search for tax incentives for new construction and renovation projects. The Federal Government has implemented incentives to drive energy efficiency and retrofits. In the next eighteen months, legislation will require certain upgrades concerning lighting. Although the upgrade should be done to save substantial energy costs, unless companies act now, they will be forced to pay more for replacing banned lighting. Many utilities will give their customers rebates to further reduce the investment cost and improve the payback for the lighting upgrade.
There is tremendous opportunity to upgrade facilities while taking advantage of the tax incentives. However, many companies struggle with cash flow and find it difficult to get these projects off the ground. Bedford has bundled our Cost Segregation with two additional services that can enhance these retrofit projects:
1. Asset Management Study (AMS), a detailed engineering analysis used to
determine individual costs of assets that may be retired (abandoned) as
part of renovations which normally occur during the ownership period of
buildings. An AMS provides a defensible position for writing-off the adjusted
basis of retired assets which can be significant.
2. EPAct Study, under IRC Section 179D allows a first year federal tax
deduction of up to $1.80 per square for qualified energy efficient lighting,
HVAC, and building envelope improvements placed-in-service after
December 31, 2005 and before January 1, 2014.
We have also looked at specific opportunities in the warehouse, distribution and manufacturing sectors for immediate retrofits. Bedford is proud to announce that we have been named as an Authorized Representative of the “The Power of Four Program.” Bedford has teamed with industry leaders who manufacture state-of-the-art lighting and heating equipment. The result is a 100% financed solution. After the facilities have been upgraded, the total costs of the new equipment and energy bill combined will be no higher than the energy bills prior to retrofit. Bedford views the financing piece of this program combined with state of the art equipment, as the opportunity for companies to afford these retrofit projects bringing them into compliance with energy standards while driving depreciation deductions and tax savings.
We have additional projects on the horizon for other market segments that combine a financing component to our services. At Bedford, we will continue to develop solutions to drive cash flow for our clients assisting them today and in the future.
We appreciate the continued support of our clients who appreciate “The Bedford Experience” and look forward to speaking with you in the coming months about the many projects on our drawing board.
Terri S. Johnson
Managing Partner
Jenkintown, PA