You still hear a lot about “going green” these days, but two recent guests put a different spin on that phrase by telling commercial property owners how to put some “green” back in their pockets.
Don Weidenfeld, Managing Member at Magnum Energy Solutions, and Julio Gonzalez, CEO of Engineered Tax Services, joined me behind the microphone to explain a strategy that combines the best of energy conservation and tax planning.
You see, Magnum is revolutionizing the HVAC industry by installing monitoring systems that reduce heating and cooling costs for commercial properties by 25% to 40%. That raises net operating income in the properties, especially in markets with cap rates from 6% to 10%, Weidenfeld said.
Magnum’s bidirectional thermostats speak wirelessly and without batteries to an occupancy sensor that takes your body temperature and motion into account. When you leave the room, it adjusts the thermostat accordingly.
The long-term savings alone would make installation of Magnum’s products worthwhile, especially for hotels, universities and timeshares. But Engineered Tax Services shows owners how to take advantage of a 2006 tax policy to recoup much of the cost – if not all of it.
ETS takes the specs of the building and models it. Once the energy savings are documented, they issue a certificate to the client, who then files it with their tax return. The certificate must be issued by a licensed engineer, and ETS has several on staff.
Gonzalez said the tax benefit ranges from $0.60 to $1.80 per square foot.
In one of Gonzalez’s personally owned buildings – around 10,000 square feet in size – he is receiving $1.80 per square foot in tax credit while installation of Magnum’s system was less than $1.00 a foot.
Weidenfeld said the company’s engineers have the highest credentials, and all of the software is 256-bit encrypted for extra security.
Only the thermostat is hard-wired, he said. The other sensors are installed without drilling, and the entire conversion process for a room takes about 10 to 12 minutes.
Combine that with the fact that everything is made right here in the USA – in Ohio – and you have a winning combination for energy retrofits.
If you’re due for an overhaul of your energy management systems, get in touch with Weidenfeld at 561-702-9000 or magnumenergysolutions.com.
You can reach Gonzalez at 561-253-6640 or engineeredtaxservices.com.
Click here to listen to the full interview with Don Weidenfeld of Magnum Energy Solutions and Julio Gonzalez of Engineered Tax Services.
