Drywall is a phenomenal creation but we end up with WAY too much of it in landfills. It’s a problem. By using Green Zip Tape you can help your community by keeping drywall out of your local land fills. It makes for a FANTASTIC pitch by the way to city and county councils as you are seeking your approvals. There are also fantastic tax benefits to be had.
If you are building a hotel, multi-family, office or medical facility and you are not using Green Zip Tape, you are missing out on many opportunities to improve your project from all facets…construction, environmental, tax, cash flow and value.
$10MM+ construction projects
Let’s talk about it. Give me a call anywhere in the U.S.
For those who have a lot of income and tax liability who are building multi-family and hospitality properties, consider the following. It’s unlikely your tax, financial and construction advisors are taking all of these strategies into account.
Build with Green Zip Tape. By doing so, about 10% of your construction costs will move from 39 year life to 5 year life allowing you to take bigger depreciation deductions earlier. This is above and beyond what you would normally get with cost segregation. $10MM project might see an additional $1MM in 5 year life. At a 35% tax rate that’s $350,000 in income tax savings or deferral. No brainer.
Utilize 263(A) if you qualify. This allows you to EXPENSE indirect costs associated with the construction of your building. This works for self constructed assets. Must be a small business and fall under the government requirements (about $30MM in revenue or less). Can’t be a syndication. If you are building this for your own investment or own use, look into it. $10MM project could see 10-15% written off as EXPENSE and not capitalized. Also can be utilized in a tax year prior to your building going into service – say you started construction in 2024 but won’t finish and go into service until 2025…you an write off some of this on your 2024.
179D – Energy Efficiency Tax Deductions….this is for buildings with 40,000 SF or more (our requirement – not the government’s). We say 40,000 because there’s a cost vs the deduction analysis. At 40,000 it definitely makes sense. It might work at 30-35,000 SF. Might see a deduction of $.88/SF to $1.16/SF…could go all the way to $5/SF but many hurdles for that. Let’s call it $1/SF…that’s a $40,000 deduction for a 40,000 SF building. Nice thing is this deduction essentially comes out of the 39 year class life. It is not subject to potential limitations of bonus depreciation. If you’re going to hold the building, it’s also a no-brainer if you need to maximized deductions.
Cost segregation – of course this is the BIG tax deduction. Many building owners will see 20, 25, 30% of their building reclassified to 5 and 15 year life giving them a massive up front deduction. Without cost segregating your building, you will deduct 2.5% per year of the building cost (1/39). $10MM building cost could see $2-$3MM in depreciation expense moved to 5/15 year life. Depending upon the bonus depreciation rules at the time they might be able to take part or all of that either in year one or early on in their ownership.
As with all of this, please consult with your tax advisor before proceeding. If you’d like to discuss your project or any of these items noted above, please let me know. Connected with me on LinkedIn.
Green Zip Tape is transforming the construction industry, and it’s only a matter of time before developers, investors, and property owners recognize it as the smarter, greener way to build. Not only does Green Zip Tape offer a more environmentally friendly approach to construction, but it also provides unmatched tax advantages that extend through the building’s life, benefiting owner after owner, year after year.
The Environmental Benefits
With Green Zip Tape, less sheetrock ends up in landfills—an impactful step toward reducing construction waste. This patent-protected tape also enables easy access to internal walls for repairs, making maintenance smoother and renovations faster, cheaper, quieter, and cleaner. It’s an innovation in sustainable building that truly minimizes environmental impact.
Maximize Financial Benefits Through Cost Segregation
The financial benefits of using Green Zip Tape are substantial. Imagine shifting approximately 10% of your project’s construction costs from the typical 27.5- or 39-year depreciation class life to a much shorter 5-year class life. For example, in a $30 million multi-family project, $3 million could be reclassified to the 5-year category, creating a significant tax advantage, even if 100% bonus depreciation isn’t renewed in 2025.
In practical terms, that $3 million reclassification translates to approximately $1 million in tax savings. Whether those savings are realized in the first year or over five years, this reclassification is a bonus on top of what you’ll get from a cost segregation study. You’re building a better building that will be able to carry on to future owners. These advantages transfer to new building owners, enhancing the building’s value and market appeal over time.
Still Deciding? Let’s Run the Numbers
If you’re considering Green Zip Tape for your project, the best way to see its value is to let us calculate the potential savings. Our team can provide a detailed analysis to help you make an informed decision.
Green Zip Tape is for Larger Projects
Green Zip Tape is currently available for projects over $10 million with significant sheetrock requirements on non-load-bearing walls. Ideal applications include multi-family, hospitality, office, student housing, senior housing and office-to-residential conversions.
I represent Green Zip Tape nationwide and am here to discuss how it could benefit your next project. Reach out today for a consultation!
Here’s an example of how a developer who is building a $30,000,000 multi-family property can defer $1,000,000 in income taxes over the first 5 years by utilizing Green Zip Tape rather than standard sheetrock tape. The video below is 3 minutes long. Green Zip Tape works on projects $10 million or more.
Green Zip Tape leverages financial incentives to build sustainably and drive positive environmental change and will revolutionize the way you manage your real estate construction portfolio.
Tax Savings: 5-10% of your construction costs move from 27.5 or 39 year class life to 5 year class life allowing for faster depreciation
Environmental Impact: Eligible for up to 25 LEED Credits (17 direct, 8 indirect)
IRS-Approved Asset Reclassification: The only tape approved by the IRS to convert interior non-load bearing walls into 5-year depreciable assets. Allows for potential wall relocation and drywall reuse.
Improved Remodeling Process: Enables quieter, quicker, and cleaner demolition, remodels, repairs, and retrofits
Explaining Green Zip Tape and how it can help building owners and developers defer more taxes
Building Product with special tax status that few know of yet. Green Zip Tape is something every commercial developer should be considering to lower taxes, increase cash flow while being environmentally friendly.
For example…let’s take a $50MM project. They could see an additional $5MM move from 27.5 / 39 year class life to 5 year by using GZT. That’s nearly a $2MM income tax savings over 5 years. The tax benefits of building with GZT transfer to the new owner. This will be helpful in marketing the property. On top of that you’ll have those who are just thrilled about the sustainabilty / green building components of your building. The cost is a fraction of the benefit.
The IRS gives Green Zip Tape a special tax status because it helps eliminate sheetrock ending up in the land fills when owners need to renovate. The patented technology in the tape allow is to be removed easily from the sheetrock without causing a bunch of damage. The sheetrock panets can then be removed and reused so you end up with removable panels at a fraction of the cost. And you get the tax benefits! It’s genious!
