Cherrytree Group LLC Blog

Warren A. Kirshenbaum, CEO, to lead series…

Warren A. Kirshenbaum, CEO of the Cherrytree Group, a Newton, MA tax credit broker, syndicator and consulting firm, has developed a Speaker Series to educate the public about the role of tax credits in development.

Kirshenbaum said that his organization will provide a speaker to any real estate, civic, business or fraternal group seeking to learn more about what tax credits are available for development.

“Many developers are unaware of the prevalence of tax credits for historic rehabilitation, environmental remediation, and other areas that can make a significant difference in the bottom line cost of the project,” said Kirshenbaum. He added, “There are credits available both at the federal and the state level, and they can be quite sizeable.” He noted that the speaker Series would educate people on the various types of credits that are available and how to take advantage of the opportunities.

Tax credits in a development project can be used for a variety of purposes. Some developers and investors use the tax credit as an equity investment. Others utilize for the tax advantages. One of the more versatile advantages of tax credits is that these credits can be re-sold. Typically, it is larger investors who purchase tax credits from other entities but not always.

To request a speaker or learn more about tax credits, please contact Warren Kirshenbaum at 781-235-8485.

About Cherrytree Group
Cherrytree Group assists developers and business owners interested in securing available tax credits at both the federal and state levels.  With significant industry expertise in the brownfields and environmental remediation fields, as well as tax credit brokerage and syndication areas,  Cherrytree Group advises business owners, real estate owners and developers on ways to monetize expenditures. In addition to tax credits, the firm assists with raising and syndicating private equity. Other services include monetizing, or trading tax credits, incentives, or grants; developmental finance; and the structuring to finance and acquire distressed real estate assets.

The firm focuses on tax advantaged development or "green" development such as the structuring and syndication of transactions involving Brownfields, historical rehabilitation, and renewable energy tax credit transactions. Additionally, Cherrytree Group advises clients on the structuring of real estate ownership entities, leasing, land use, and zoning/permitting.

Massachusetts awards tax credits to help downtown revitalization projects.
 
The credits support millions of dollars of building improvements in communities all over Boston and Massachusetts.

The tax credit program has been in place for years.
 
A prime example of the tax credits at work are buildings in prime locations. Many of these buildings have boarded windows, brownfields or have been deserted and rundown for a long time. These buildings are a visual symbol of the problems afflicting downtown areas.

Million dollar renovation projects will create new commercial space and office space while beautifying communities all over Massachusetts. Often these buildings need elevators, sprinklers, wiring and new heating and ventilation systems, all covered by commercial tax credits.
 
Except for some cosmetic blemishes, many of the building are in great shape.
 
These types of projects are prevalent in many communities that can benefit from this year's tax credits awards.

Costs need to fit what the rents are in the area. Many of these projects would not be cost effective without the commercial tax credit programs.  Often they make the difference.

Tax credits ensure that we grow jobs, and economic opportunities in our downtowns across Massachusetts.
For assistance in filing for syndicating or brokering commercial tax credits in Boston and throughout Massachusetts, contact The Cherrytree Group.

VPR

The "Commercial Building Tax Deduction" establishes a tax deduction for expenses incurred for energy efficient building upgrades made by a building owner . The deduction is  for $1.80 per square foot of the property, with allowances for partial deductions for improvements in interior lighting, HVAC and hot water systems, and building envelope systems.

Commercial real estate owners and business owners who have upgraded their buildings to be more energy efficient may qualify for tax deductions or investment tax credits. Consumers and business people should take advantage of the tax incentives. Generally, a tax credit is more valuable than a tax deduction because a tax credit reduces your taxes. A tax deduction only reduces the taxes that you owe by a percentage.

As a commercial real estate owner, if you have improved the energy efficiency of your commercial property or added energy efficient systems into your new building, you could be eligible for a tax deduction of up to $1.80 per square foot.

To qualify for the full deduction, the energy efficient investments must reduce energy costs by at least 50%.  A partial deduction of $0.60 per square foot is available for investments in one of three systems—lighting; heating and cooling; or building envelope. Remember, tax deductions reduce your overall taxable income which reduces the percentage of taxes you owe.

Do you want to know if you qualify for energy efficient tax credits or tax deductions? Contact The Cherry Tree Group, a Massachusetts based business consultant, and broker and syndicator of tax credits.