Maximize Cash Flow and Minimize Risk with Section 174 Coverage
As changes in accounting under Section 174 create new challenges, many businesses face large, unfunded tax liabilities due to the amortization of R&D expenses. National Tax Group’s Section 174 Coverage offers a solution. With a tailored insurance program, businesses can manage risk and gain the cash flow needed to cover current and past obligations.
Schedule a free consultation with our team of specialists to get started!
NTG Mutual Section 174 Coverage 2024
What is Section 174 Coverage?
The change in accounting under Section 174 stemming the expiration of the Tax Cuts and Jobs Act of 2017
(TCJA) is affecting thousands of businesses across the country. Congress was considering reverting the law
back to the prior application pre-2017 but the Senate has yet to address the problem. Consequently, our
program allows a business the ability to address the risk associated with the uncertainty in the current legal
landscape specifically with regard with amortized R&D expenses. We are able to use insurance coverage to
manage your risk and at the same time create additional cash flow to offset the adverse consequences
associated with the change in law.
How Does it Work?
NTG Mutual uses your prior and current year Qualified Research Expenses (QREs) to establish a baseline for
your custom risk profile. From there we are able to develop a premium model which will ensure compliance
with the accounting method change law that is fully funded. Using a mutual insurance carrier which has
agreed to write this coverage on behalf of our clients, we are able to place this coverage in 2024 which
helps offset current and prior obligations.
Download Our Free Guide: Navigating Section 174 Coverage
Unlock the full potential of your business with our comprehensive guide on Section 174 Coverage. Learn how to mitigate the financial impact of the latest tax changes, secure additional cash flow, and protect your R&D investments.
Inside, you’ll discover:
-Key details on how Section 174 affects your tax liabilities
-Step-by-step instructions for implementing coverage
-Expert insights on maximizing your savings
| Coverage Amount | Policy Period | Baseline Premium | Cost |
|---|---|---|---|
|
$1,000,000 – $100,000,000 |
2024 |
Qualified Research Expenses |
5 – 8% of Premium |
Underwriting Process
2024 Study & Review
of Prior QREs
Insurance & Finance Underwriting
Binding Coverage
Company works with NTG Advisors to establish Section 174 Coverage needs through current study and review of prior CREs.
Our insurance and finance team reviews the information submitted in your file to underwrite your coverage.
Online document endorsement and payment options makes binding coverage a seamless process.
We’ve Saved Our Clients
MILLIONS
Through a cost segregation study, properties can be reclassified from a standard 39-year depreciable life to a 5, 7, or 15-year depreciable life, which enhances federal tax credit savings, and improves cash flow. Building and property owners are also able to retrieve missed deductions from previous years.
Almost any property from any company or industry can benefit from a Cost Segregation Study. The National Tax Group has performed Cost Segregation Studies for a variety of industries over the last 20 years and has saved our clients millions in tax incentives. If your business owns property, chances are you can increase your cash flow with this tool.
Businesses like restaurants, hotels, apartment buildings, and commercial property have the most to gain from a cost segregation study. These businesses typically have the most lucrative outcomes from utilizing this tax tool.
We help owners across several key industries
Frequently Asked Questions
Simple. Cash-flow. The changes to the current law related to amortizing R&D expenses has created huge tax liabilities (in many instances unfunded) for thousands of companies across the country. By using 174 Coverage, your organization can revert the amortization schedule using savings from this current year to help cover current and past liabilities.
There are a number of businesses and CPAs across the country that have been seeking a solution for over two years to address the concern related to amortization.We have received very positive feedback about the program which allows us to work together with a
number of clients to offer this creative solution.
Speak to one of our professionals that can help determine eligibility and size of the coverage needed.From there you can implement this program to take effect by year-end.
|
Section 174 Cash Flow Comparison |
||
|---|---|---|
|
|
Section 174 Coverage |
Taking No Action |
|
Amortized Expense |
Up to 100% |
20% |
|
Cost |
5-8% |
24-49% |
|
Effect |
No Significant Impact |
Significant Cash Outflow |
|
Application Window |
By December 15 |
N/A |
IMPORTANT INFORMATION: Program terms and conditions apply. Please review application and loan agreement. WI state refunds do not qualify. Loan amounts must be used for business purposes only. This document is published and distributed for informational purposes only. Loans subject to underwriting. Not all businesses and individuals will qualify. Rates and Terms subject to change. National Tax Group does not participate in any filing of tax returns, is not authorized to file tax returns and only lends funds based on returns prepared by your CPA. 1. Personal guarantee required for the loan amount. 2. Based on 365 day loan term. Interest is prepaid. Rate is determined by a number of factors and will be presented prior to loan funds being issued. No refunds of prepaid interest will be issued for early repayment. 3. 48-Hour timeline is an approximation and may take longer in some instances. Revised June 2024.
How do I get in touch?
Primary Contact: Lee Ferry, President
NTG Mutual
Phone (561) 257-3436
Email: LFerry@NTGAdvantage.com
Why choose National Tax Group’s Cost Segregation Services?
With the combined expertise of engineers, construction specialists, and accounting professionals, we can handle complex and time-sensitive cost segregation studies. Our main objective is to facilitate maximum tax savings and improve cash flow.
There are many projects that business owners, companies, and individuals can do in order to speed up depreciation deductions.
A property is eligible for a cost segregation study at any time before, during and after a remodel or construction of a property. Through our experience, National Tax Group recommends that the ideal time to complete a study is during the first year a building is constructed, purchased or remodeled. However, a cost segregation can almost always benefit a building owner. For those who are in the works with an architect and are planning a construction or remodeling, the best time to perform a study with us is before the building is set.
Our analysts and accountants will thoroughly evaluate your assets. Then a licensed deduction calculator is used to identify assets that will be segregated. Once the site visitation procedure is complete, the study will take up to 4 weeks to complete.
Projects that are ideal for Cost Segregation Studies include:
- The construction of new buildings
- The renovation or expansion of existing buildings
- The purchase of a building
- The renovation of a leased building
For federal income tax purposes, building costs are classified into 3 main types:
- Tangible property
- Land improvements
- Real property
How do Cost Segregation Studies work?
- On-site auditing Service benchmarking
- Documentation as per IRS guidelines
- Tax deduction strategies
- Appropriate allocation of all indirect costs
- Identifying substantial amounts of accelerated depreciation
- KPI measurement
- Legal compliance
- Final reports for easy-to-use data for tax planning
TESTIMONIALS
What Our Clients Are Saying
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||