PHCC Works to Improve “Green” Market for Members through Advocacy, Research and Training

Advocating for water- and energy-efficient technologies and helping members succeed in the rapidly expanding green marketplace, are two top priorities for PHCC in the coming year.

Initiatives already in progress or planned for 2010 include:

·         Support for EPA’s WaterSense Program:  Promote legislation to secure permanent funding for EPA’s WaterSense program, support legislation for consumer tax credits on WaterSense-certified product installations, create templates for chapter and member participation in WaterSense’s 2010 Fix a Leak Week (Mar. 15-21.)

·         Secure funding for the Plumbing Efficiency Research Coalition’s (PERC) research project on the effect of low-flow (1.28gpf) toilets on drain line carry.

Note:  A potential solution to address drain carry concerns was proposed during PERC’s technical meeting in late November.  It suggests that a timed flush valve installation to introduce a “slug” of water into the drainline would alleviate low-flow issues in most commercial and residential drainlines.  PHCC seeks member input on this solution.   Please email Ike Casey at casey@naphcc.org if you have experience with this type of installation.

·         Support for state and local associations with GreenPlumbers® training:  create marketing templates to promote Chapter-sponsored workshops, develop best practices for obtaining state grants to conduct ‘green’ training; conduct a Train the Trainer program for state and local instructors and apprentice school instructors to expand training opportunities (funding approval requested.)

·         Establish a task force of subject matter experts to develop a strategy for PHCC to provide significant value to members in education and training for energy and water efficient installations.  It is expected that the task force will report to the Board at its April 2010 meeting on potential programs and activities that will broaden PHCC’s “Green” education offerings. 

Best Practice – Year-End Tax Tips That Can Benefit Your Business

 

 (The following is an excerpt from an article by Michael Bohinc, CPA of Keeping Score, Inc., which appeared in the Ohio PHC Contractor, Volume 2009, Issue 4. He is a licensed HVAC and plumbing contractor in the State of Ohio. Michael can be reached at (440) 708-2583 or mbohinc@keepingscorecpa.com.

Here are some tax tips for the upcoming year-end that may benefit your business.  Please note that some of them have had their expiration dates extended by tax legislation during the year:

Section 179 Deduction:  allows a business to immediately write off an asset purchase (vehicle, equipment, etc.) in the year of purchase, rather than having to depreciate it. The limits for 2009 are $250,000 maximum deduction with an investment limit of $800,000.   

Bonus Depreciation: originally scheduled to expire Dec. 31, 2008, this provision has been extended through Dec. 31, 2009.  It allows you to take a ‘bonus’ depreciation amount for the year equal to 50% of the adjusted basis of qualifying property placed in service during the year.   

Domestic Production Activities Deduction (Section 199):  This is a complex code section and the deduction requires a number of calculations. However, it’s something that contractors should discuss with their accountants because the benefits can be significant. The definition of “production” under this code section is broad and includes both construction services and specialty trades. For 2009, the deduction is 6%. It is based on the lesser of your taxable income or net income from qualified production activities.

Other ways to reduce taxable income and correspondingly the tax liability for the business include:

·         Prepay bills (i.e. utilities, cell phone bills, insurance, rent, equipment maintenance & repair, etc.)

·         Purchase things like office supplies that you’ll use in the following year.

·         Write down obsolete inventory. It will increase your cost of goods sold and, correspondingly, reduce your taxable income.  Consider donating obsolete inventory to a charity for a charitable tax deduction.

·         Maximize the annual contribution to the company retirement plan. If you don’t have a plan, establish one before the end of the year.

·         Write off bad debts. You need to have proof that there is a legitimate relationship between you and the client, that the receivable is worthless and that you suffered an actual loss. You do need to keep good records and show that you made reasonable efforts to collect what is owed.

It is important that you check with your CPA to see what deductions are available and make sense for your specific situation.  The tax structure of your business (sole proprietor, C corp, S corp, etc.) determines what tax-saving ideas are available to your business.

U.S. Treasury Department Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This article is not intended to be comprehensive in nature and competent professional tax advice should be sought in determining the issues that impact your specific situation.

Reprinted with Permission from the PHCC - National Association Chapter Bulletin, November 2009.