Tangible Property Regulations

1. Tangible Property Regulations Property tax revenue is a significant source of state and local revenue Taxpayers are faced with complex regulations, dissimilar filing requirements, deadlines, exemptions, abatements, etc., that vary with each taxing jurisdiction. The engagement of a professional property tax consulting firm is often required to ensure that companies pay only the minimal tax amount and they meet all compliance requirements. KBKG’s property tax consultants provide innovative and proven valuation and tax compliance consulting services to our clients. We understand the complex and multistate issues surrounding real estate and personal property tax valuation and administration. We specialize in providing a complete range of real and personal property tax assessment and management services across a broad range of industries and locations. In addition to our property tax services, KBKG provides cost segregation and tax depreciation services to ensure our clients take full advantage of available accelerated depreciation deductions for federal income tax purposes. Section 45L Tax Credit Recent tax legislation extended the Energy Efficient Home Credit which offers a 45L Tax Credit of $2,000 per dwelling unit to developers of energy efficient apartment buildings and homes. Eligible 45L Tax Credit Apartment Buildings & Condos: A dwelling unit should provide a level of heating and cooling energy consumption that is significantly less than certain national energy standards, dependent on when the unit is sold or leased. Based on current construction trends, many developments already exceed these standards. Given that current energy codes have evolved tremendously over the past five years, many developers are already building to specifications that would meet the criteria for this credit. All apartment buildings and

2. residential condominium developments completed within the last 4 years are worth assessing for potential 45L tax credits. Eligible construction also includes substantial reconstruction and rehabilitation. Developers can still claim the 45L tax credit retroactively if they did not claim them on previous tax returns. California Competes Tax Credit The California Competes Tax Credit is an income tax credit for businesses that are expanding or relocating to California. California Competes is a tax credit program that Gov. Jerry Brown approved in 2013. It is a successor program to the Enterprise Zone Tax Credit which is phased out in 2014. The amount of credits available will increase over several years: $30 million in 2013-14 $150 million in 2014-15; and $200 million in each year through 2017-18. The credit available to any individual business will be based on a set of criteria including: the number of jobs created, opportunity for future growth, and many more. Employment Tax Credits Governments often entice businesses to invest locally in order to encourage economic growth, which is measured by increased employment, new technology, and improved civic infrastructure. Federal and state laws provide tax benefits for qualified activities such as: Locating a business in metropolitan, industrial, or rural areas Hiring targeted groups of individuals Purchasing capital assets Investing in experimental research For more information please visit http://www.kbkg.com