Green Zip® Tape
Increases 5-Year Depreciation
for Development Cost Segregation

Response: Green Zip® Tape has been used for over 1,000 development projects, where the majority of those have been in Arkansas, Kentucky, Missouri, and Texas. CBRE Investment Management alone has used Green Zip® on 29 hotels, 62 apartment buildings, 19 assisted living facilities, and 5 banks.

Response: No, it has NEVER caused an audit. We have fortune 100 companies with full time IRS auditors that have used our product and supported the depreciation during their normal audit. We have also had companies pay to have a pre-file audit that was completely affirmed by the IRS and we have a pre-file private letter ruling [ PLR 110197-13 ] that supports all of our claims. The DOJ (Attorney General, Janet Reno) worked with the founder to give benefit to businesses to encourage the only environmentally sustainable solution for keeping drywall out of landfills. The Treasury isn't trying to stop us from doing this – they approved the design of the benefit.

Response: The depreciation benefits travel with the project, so the new buyer can use the generated 5-year depreciation. This generates a tax asset that can be reflected in that sale price.

Response: This does not prevent the use of Green Zip® Tape, where the minor change can be addressed by a change order prior to the drywall installation.

Response: That would change the ability to take the 5-year depreciation all in year one, but it does not change the ability for you to increase the amount of 5-year property by 1.9x to 2.8x.