Stockman Kast Ryan + Co to Open Denver Tech Center Location

Local accounting firm expands

Colorado Springs, Colo. – Stockman Kast Ryan + Co, LLP (SKR+CO) is expanding its presence in Denver with a new 4,200-square-foot office in Greenwood Village.

A community-focused, full-service public accounting firm that is headquartered in Colorado Springs, SKR+CO’s Denver office will open in Summer 2023 with nine offices, one conference room and shared workspaces for a total of 23 employees. Construction is currently in progress.

Tax Partner Ann Koenigsman will be the Partner-in-Charge of opening the Denver location.

“We are delighted to announce the opening of our new office in the Denver Tech Center,” said Koenigsman, who specializes in Trusts, Estates, and Family Office Services. “This expansion is a significant milestone for our firm, and it is a testament to the hard work and dedication of our team. The new office will provide us with a strategic presence in the Denver market, allowing us to better serve our Denver clients and meet their evolving needs. We are excited about the opportunities this new office brings, and we look forward to continued growth and success.”

SKR+CO has served many business and individual clients in the Denver metro area for decades. In December 2022, SKR+CO grew its in-person Denver presence by partnering with Chris Hambor, CPA, formerly of Singular CPA. Adding the new office is a response to consistent client growth along the Front Range, and the Denver-based staff will provide greater face-to-face client services in the metro area. Recruiting and hiring efforts are underway for tax, audit, and operations professionals, with in-office, virtual, and hybrid options available for many positions.

SKR+CO is an award-winning accounting firm, recently named a 2023 Regional Leader by Accounting Today and ranked Best in Business in 2022 by the Colorado Springs Business Journal.

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About Stockman Kast Ryan + Co.

SKR+CO is a community-focused, Colorado-owned, independent certified public accounting firm providing a variety of in-depth consulting for businesses and individuals. Advisory services include tax planning, audit and assurance services, outsourced controller and contract CFO, financial reporting, estate + trust planning, business valuations, and litigation support. SKR+CO is headquartered in Colorado Springs, with a second office in Denver. SKR+CO is an independent member firm of the BDO Alliance USA, a nationwide association of independently owned local and regional accounting, consulting, and service firms with similar client service goals. For more information, visit www.skrco.com.

• Client Business Meals: 50% deductible if ordinary and necessary in carrying on business, taxpayer is present, provided to current or potential client or consultant and not lavish or extravagant
• Entertainment Related Meals: 50% deductible if charges are stated separately from the cost of entertainment, no deduction otherwise
• Meals Provided for the Convenience of Employer: 50% deductible
• Meals Provided to Employees Occasionally and Overtime Employee meals: 50% deductible
• Meals in Office during meetings of employees, stockholders, agents or directors: 50% deductible
• Meals During Business Travel: 50% deductible

Barring further action by Congress, many of the TCJA rules are scheduled to expire after 2025 and some may revert to tax rules that were effective in 2017. To learn more, review our chart of meal + entertainment deductions by category and tax year.  

Two major changes from the Inflation Reduction Act include Section 179D building deduction changes and the new direct transfer system. These go into effect January 1, 2023.

Section 179D building deduction changes

The Commercial Buildings Energy-Efficiency Tax Deduction (SS179D) provides a deduction of up to $1.88 per square foot for both building owners who construct new or renovate existing energy efficient buildings as well as designers of government-owned buildings. The IRA modifies the tax deduction for energy efficient commercial buildings with new rules for property placed in service Jan 1, 2023. These include:

• Lowering the minimum required savings in total annual energy and power cost
• Removed existing rules for partial certifications
• Provides higher deductions for meeting prevailing wage and apprenticeship requirements
• Removes the lifetime limit, permitting subsequent energy improvements
• Allows allocations of 179D deductions to all tax-exempt entities, and both public and tax-exempt organizations can allocate 179D deductions to their designers.
• Established a new retrofit program

New direct transfer system

Additionally, the IRA created two new credit monetization methods: direct pay for tax-exempt entities and full transferability of credits for taxable entities. This change establishes a market for buying and selling tax credits, as well as including all companies to take advantage of clean energy credits.

Click here to learn more about how these  two new credit monetization methods can support your company’s sustainability strategy and lower total tax liability.

Optimize your benefits with the Inflation Reduction Act (IRA) new credits and incentives. 

Understanding the opportunity of the new direct transfer system

The passage of the Inflation Reduction Act (IRA) has created a momentous opportunity for companies to advance clean energy commitments while lightening tax burdens. Signed into law on August 16, the IRA is the largest climate investment legislation in history, allocating $369 billion to clean energy programs over the next 10 years—including many new clean energy credits and incentives for businesses.

One of the law’s most significant changes is the creation of two new credit monetization methods: direct pay for tax-exempt entities and full transferability of credits for taxable entities. The transferability provision effectively creates a market for buying and selling tax credits. The new credit market means that any company, not just energy producers, can take advantage of clean energy credits. For example, a company installing a solar facility on the roof of its building may be eligible for credits that it can use or sell to another company. All companies should consider how these credits can support their sustainability strategy and lower total tax liability.

Other key credits and incentives changes in the IRA include:

• Extension of existing clean energy tax credits by 10 years, allowing organizations to plan for the long-term.
• Introduction of a base and bonus rate structure for the Investment Tax Credit (ITC) and Production Tax Credit (PTC), where businesses that meet certain apprenticeship and prevailing wage requirements are eligible for a bonus credit up to five times the base amount. Businesses may also be eligible for additional credits, and by taking advantage of these credits, may be able to achieve a bonus ITC as high as 50-60%. Additional credits include:
  • 10% domestic content credit.
  • 10% energy communities’ credit.
  • 10-20% low-income communities’ credit (applies to solar and wind projects under 5MW and only the ITC).
• Allowance for credits to be carried forward up to 22 years and carried back up to three years.

In addition, while the IRA also introduces a new 15% corporate alternative minimum tax (AMT) that will take effect in 2023, the IRA’s clean energy credits are among the AMT offsets that are available to affected taxpayers. Corporations that expect their total tax liability to increase due to the new AMT should consider buying credits to mitigate the impact.

How sellers can monetize credits

Project owners without significant tax liability must decide whether to monetize credits under the new direct transfer rules or use a traditional tax equity structure. Businesses must weigh both options to determine the best path forward for the business and the project.

Direct credit transfers may avoid higher compliance, legal and advisory costs that come with complex tax equity partnership structures but may not allow for the efficient monetization of depreciation. Based on the size and cost of the project, however, there may be an inflection point at which a traditional tax equity structure will yield greater return over a direct transfer. Building a comparative model—either in-house or by working with an advisor—can help a company determine the best structure for its project.

Another consideration concerns the capital structure for new energy projects. When opting for transferring a tax credit, project owners may have to seek additional capital for the initial investment as the credit transaction timing may not occur until the project is nearing commercial operation. To ensure credits can be sold for maximum value, it is critical for sellers of credits to clearly document that the underlying requirements have been met for the credit to achieve the expected value. Companies looking to sell credits should consider working with an independent tax consultant who can certify the underlying requirements, such as prevailing wage and apprenticeship, in a given project have been met to realize the full expected value.

For companies considering a renewable energy project, the time to start construction is now, as projects that are placed in service before year-end, or up to 60 days after the Treasury issues guidance on prevailing wage and apprenticeship requirements, will automatically be eligible for the ITC and PTC at full rates.

While it is still unclear how credits will be valued at the time of sale, the projects that can provide thorough documentation demonstrating credit requirements were achieved will likely transfer at the highest rates.

Considerations for buyers of tax credits

Buyers should perform due diligence on credit sellers’ projects when purchasing credits to confirm the underlying requirements have been met. A buyer who purchases what it believes is a 30% ITC, for example, should be sure that the bonus requirements were satisfied or else risk the purchased credit being worth less than expected. Buyers also need to determine who will take on the risk of recapture or disallowance if the credit does not meet advertised expectations. As the direct transfer market develops, buyers may seek indemnity clauses as part of the credit transfer agreement. Businesses interested in buying credits should consider working with a tax advisor who can help validate credits, ensuring they meet the advertised value.

What’s next for businesses

Treasury is scheduled to issue additional guidance on the prevailing wage and apprenticeship requirements. Here is a calendar of important upcoming dates to watch:

Written by Michael Stavish. Copyright © 2022 BDO USA, LLP. All rights reserved. www.bdo.com

Colorado Springs, Colo. – Stockman Kast Ryan + Co, LLP (SKR+CO), the largest locally-owned certified public accounting firm in Southern Colorado, congratulates Buddy Newton, CPA , CVA®, on being recognized for the Construction Financial Management Association’s (CFMA) 2022 Rising Stars.

CFMA, the only nonprofit dedicated to the success and growth of construction financial professionals, announces its second class of Rising Stars. These leaders under 40 years old are honored for positively impacting their companies and the construction industry.

“It is inspiring to see these young professionals recognized for building a stronger industry,” said Tom Borgia, CFMA’s 2022-23 Chairman. “With a focus on the future, I am confident that these leaders will help guide us through the changing needs of the construction industry.”

“Leaders like these Rising Stars will surely help advance our industry, strengthen CFMA, help us innovate, and build inclusive community,” says Stuart Binstock, CFMA’s President & CEO. “I am excited to see how they will help carry the construction industry — and CFMA — into the future.”

Learn more about the winners at cfma.org/risingstars.

Colorado Springs, Colo. – Stockman Kast Ryan + Co, LLP (SKR+CO), the largest locally-owned certified public accounting firm in Southern Colorado, announces staff promotions, photos attached:

• Jared Usrey – Promoted to Tax Operations Manager

Jared has a bachelor’s in business management with an emphasis in accounting from the University of Colorado Colorado Springs.  He has been in public accounting since 2016.

• Jennifer Dawson – Promoted to Accounting Services Manager

Jennifer has a degree in accounting from the University of Colorado Colorado Springs. She has been in public accounting since 2005.

About Stockman Kast Ryan + Co

SKR+CO is Southern Colorado’s largest independent certified public accounting firm providing a variety of in-depth consulting for businesses and individuals. Advisory services include tax planning, audit and assurance services, outsourced controller and contract CFO, financial reporting, estate planning, business valuations and litigation support. For more information, visit www.skrco.com. SKR+CO is an independent member firm of the BDO Alliance USA, a nationwide association of independently owned local and regional accounting, consulting and service firms with similar client service goals.

Colorado Springs, Colo. – Stockman Kast Ryan + Co, LLP (SKR+CO), the largest locally-owned certified public accounting firm in Southern Colorado, congratulates Buddy Newton, CPA , CVA®, as the eleventh member of the SKR+CO partner group. Buddy brings thirteen years of experience as a business valuation analyst and tax accountant, with a specialty focus in the construction, auto dealer and high-net worth industry.

“We are pleased to welcome Buddy to the partner team,” shared SKR+CO Tax Partner Judy Kaltenbacher. “Buddy’s extensive background, industry expertise and education will complement our team and provide more value for our clients.”

In addition to being a CPA, Buddy holds certification in Certified Valuation Analyst (CVA®). Buddy has a Master of Science in Taxation from Northeastern University and a bachelor’s in business with an emphasis in Accounting from University of Colorado, Colorado Springs.

In 2019, Buddy was recognized as one of that year’s 40 Under Forty Honorees by the National Association of Certified Valuators and Analysts® (NACVA®).  NACVA’s® 40 Under Forty program recognizes the nation’s emerging visionary leaders across all spectrums of the accounting and financial consulting professions. The honorees embody the drive, motivation and courage needed to lead the industry’s next generation.

Buddy was most recently a Senior Tax Manager at SKR+CO.  He also serves as a reserve Sergeant for the El Paso County Sherriff’s office.

About Stockman Kast Ryan + Co

SKR+CO is Southern Colorado’s largest independent certified public accounting firm providing a variety of in-depth consulting for businesses and individuals. Advisory services include tax planning, audit and assurance services, outsourced controller and contract CFO, financial reporting, estate planning, business valuations and litigation support. For more information, visit www.skrco.com. SKR+CO is an independent member firm of the BDO Alliance USA, a nationwide association of independently owned local and regional accounting, consulting and service firms with similar client service goals.

Colorado Springs, Colo. – Stockman Kast Ryan + Co, LLP (SKR+CO), the largest locally-owned certified public accounting firm in Southern Colorado, announces the hiring of Human Resources Generalist Andrew Wilson. Andrew will provide functional support for human resources and operations to include employee engagement, performance management and compliance.

Andrew brings a wealth of knowledge and experience to the team, with work history in for-profit and non-profit industries. He is skilled in areas of coaching, communication and people management.

Prior to joining SKR+CO, Andrew was Regional Human Resources Manager at VillaSport Athletic Club and Spa in Colorado Springs.

Andrew has a degree in Political Science from Southern New Hampshire University.

About Stockman Kast Ryan + Co

SKR+CO is Southern Colorado’s largest independent certified public accounting firm providing a variety of in-depth consulting for businesses and individuals. Advisory services include tax planning, audit and assurance compliance, outsourced controller and contract CFO, financial reporting, estate planning, business valuations and litigation support. For more information, visit www.skrco.com. SKR+CO is an independent member firm of the BDO Alliance USA, a nationwide association of independently owned local and regional accounting, consulting and service firms with similar client service goals.

SKR+CO Tax Record Retention Schedule (Click Here)

The Consolidated Appropriations Act of 2021 (Act), signed into law on December 27, 2020, contains significant enhancements and improvements to the Employee Retention Credit (ERC).  The ERC, which was created by the CARES Act on March 27, 2020, is designed to encourage employers (including tax-exempt entities) to keep employees on their payroll and continue providing health benefits during the coronavirus pandemic. The ERC is a refundable payroll tax credit for wages paid and health coverage provided by an employer whose operations were either fully or partially suspended due to a COVID-19-related governmental order or that experienced a significant reduction in gross receipts.

Employers may use ERCs to offset federal payroll tax deposits, including the employee FICA and income tax withholding components of the employer’s federal payroll tax deposits.

ERC for 2020

The Act makes the following retroactive changes to the ERC, which apply during the period March 13, 2020 through December 31, 2020:

• Employers that received PPP loans may qualify for the ERC with respect to wages that are not paid with proceeds from a forgiven PPP loan.
• The Act clarifies how tax-exempt organizations determine “gross receipts.”
• Group health care expenses are considered “qualified wages” even when no other wages are paid to the employee.

Insights

• Employers that received a PPP loan and that were previously prohibited from claiming the ERC may now retroactively claim the ERC for 2020.
• With respect to the retroactive measures in the Act, employers that paid qualified wages in Q1 through Q3 2020 may elect to treat the qualified wages as being paid in Q4 2020. This should allow employers to claim the ERC in connection with such qualified wages via a timely filed IRS Form 7200 or Form 941, as opposed to requiring an amended return (IRS Form 941-X) for the prior quarter(s) in 2020.

ERC for 2021 (January 1 – June 30, 2021)

In addition to the retroactive changes listed above, the following changes to the ERC apply from January 1 to June 30, 2021:

Increased Credit Amount

• The ERC rate is increased from 50% to 70% of qualified wages and the limit on per-employee wages is increased from $10,000 for the year to $10,000 per quarter.

Broadened Eligibility Requirements

• The gross receipts eligibility threshold for employers is reduced from a 50% decline to a 20% decline in gross receipts for the same calendar quarter in 2019.
• A safe harbor is provided allowing employers to use prior quarter gross receipts compared to the same quarter in 2019 to determine eligibility.
• Employers not in existence in 2019 may compare 2021 quarterly gross receipts to 2020 quarters to determine eligibility.
• The credit is available to certain government instrumentalities, including colleges, universities, organizations providing medical or hospital care, and certain organizations chartered by Congress.

Determination of Qualified Wages

• The 100-full time employee threshold for determining “qualified wages” based on all wages paid to employees is increased to 500 or fewer full-time employees.
• The Act strikes the limitation that qualified wages paid or incurred by an eligible employer with respect to an employee may not exceed the amount that employee would have been paid for working during the 30 days immediately preceding that period (which, for example, allows employers to take the ERC for bonuses paid to essential workers).

Advance Payments

• Under rules to be drafted by Treasury, employers with less than 500 full-time employees will be allowed advance payments of the ERC during a calendar quarter in which qualifying wages are paid. Special rules for advance payments are included for seasonal employers and employers that were not in existence in 2019.

Insights

• Employers that previously reached the credit limit on some of their employees in 2020 can continue to claim the ERC for those employees in 2021 to the extent the employer remains eligible for the ERC.
• Qualification for employers in 2021 based on the reduction in gross receipts test may provide new opportunities for businesses in impacted industries.
• Eligible employers with 500 or fewer employees may now claim up to $7,000 in credits per quarter, paid to all employees, regardless of the extent of services performed. Previously this rule was applicable to employers with 100 or fewer employees and a maximum of $5,000 in credit per employee per year. Aggregation rules apply to determine whether entities under common control are treated as a single employer.

The Act may provide significant opportunities for your company. However, the interplay between the Act, the CARES Act and various Internal Revenue Code sections is nuanced and complicated so professional advice may be needed.