What is Green Zip® Tape?

Green Zip® Tape is a patented, self-adhesive drywall tape that enables movable and removable drywall partitions for commercial real estate. When used in cost segregation studies, Green Zip® Tape allows drywall to be classified as 5-year property instead of 39-year property, creating $5-$15+ per square foot in tax savings.

What financial benefits does Green Zip® Tape provide?

Green Zip® Tape demountable drywall partition technology can accelerate depreciation and Net Present Value, reduce near-term tax liability, increase cash flow, and reduce retrofitting costs. The IRS has ruled that movable and removable Green Zip Partitions classify as personal property, qualifying them for 5-year depreciation instead of 27.5 years (residential) or 39 years (commercial).

What types of buildings qualify for Green Zip® Tape financial benefits?

Any commercial or residential rental property constructed or purchased after 1986. Green Zip® Tape has been approved by the IRS as Asset Class 57.0 personal property, which includes office buildings, hotels, motels, medical office facilities, hospitals, assisted living facilities, apartment buildings, banks, small businesses, wholesale/retail merchants, and professional services buildings.

Does Green Zip® Tape qualify for LEED credits?

Yes. Green Zip® Tape construction technology is recognized as being eligible for LEED credit by the US Green Building Council (USGBC). The product can earn up to 11 LEED credits. Green Zip® Tape received the prestigious R+D Award from The Journal of the American Institute of Architects in 2010 and has received awards from both the Environmental Protection Agency (EPA) and the AIA in their Lifecycle Building Challenge.

Will Green Zip® Tape trigger an IRS audit?

No, Green Zip® Tape 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. We have a pre-file private letter ruling (PLR 110197-13) that supports all of our claims.

Can you use Green Zip® Tape with cost segregation?

Yes. Green Zip® Tape is specifically designed to enhance cost segregation studies. CSSI is the one company that has the license to sell Green Zip® Tape and to do the associated cost segregation study. Green Zip® Tape qualifies drywall partitions as Asset Class 57.0 personal property, increasing the amount of 5-year property by 1.85x to 2.70x in cost segregation studies.

How much tax savings does Green Zip® Tape provide?

Green Zip® Tape creates $5-$15+ per square foot in tax savings for commercial real estate projects. By accelerating depreciation from 39 years to 5 years and enabling bonus depreciation, property owners can receive tax benefits 7-8 times faster, significantly improving cash flow and net present value.

Is Green Zip® Tape IRS approved?

Yes. Green Zip® Tape is IRS-approved through Private Letter Ruling PLR 110197-13. The IRS has validated that movable and removable Green Zip® Tape partitions qualify as personal property eligible for 5-year depreciation. Fortune 100 companies have successfully used Green Zip® Tape with full IRS audit support.

Does Green Zip® Tape slow down construction?

No. Green Zip® Tape does not slow down construction. Installation is actually faster than traditional methods (twice as fast as a Bazooka gun). Green Zip® Tape won't add to the construction schedule or construction cost. It uses conventional gypsum drywall, removable screws, and metal or wood studs - the same materials you're already using.

Green Zip® Tape Benefits &
What Is It?

Financial Benefits

Green Zip® Tape accelerates depreciation from 39/27.5 years to 5-year property depreciation, creating substantial tax savings of $5-15+ per square foot through cost segregation. Learn more about commercial real estate uses that benefit most from Green Zip® Tape tax savings.

Construction Benefits

Green Zip® Tape installation reduces installation time (twice as fast as a Bazooka gun) and allows for non-destructive drywall removal that can be performed during regular hours. This construction efficiency complements the 5-year depreciation benefits for cost segregation studies.

Environmental Benefits

Green Zip® Tape minimizes construction waste and drywall waste in landfills, which produces toxic hydrogen sulfide gas and accounts for 26% of construction landfill waste. This environmental benefit contributes to LEED certification and helps meet green building requirements.

LEED Certification

Green Zip® Tape qualifies for up to 11 LEED credits and LEED certification, helping meet increasingly strict green building requirements. Combined with tax depreciation benefits, Green Zip® Tape delivers both environmental and financial value for commercial real estate projects.

What Is It?

How does Green Zip® Tape work?

Green Zip® Tape works through a three-step process:

Installation

Apply self-adhesive Green Zip® Tape over drywall joints and screws during Green Zip® Tape installation, then float joint compound over the tape, leaving a small tab at the bottom

Demounting

Pull the exposed tab to "zip" the Green Zip® Tape through dried compound, exposing screws for easy non-destructive drywall removal without messy demolition.

Tax Benefits

Walls become classified as 5-year property depreciation instead of 39-year property through Green Zip® Tape cost segregation, creating immediate tax savings of $5-$15 per square foot.

What is cost segregation?

Cost segregation is an engineering-based tax strategy that identifies and reclassifies building components from 39-year property (commercial) or 27.5-year property (residential) to shorter depreciation periods (5, 7, or 15 years). Green Zip® Tape enhances a general cost segregation study by qualifying drywall partitions and enclosed components as 5-year assets.

How does 5-year depreciation work?

The U.S. tax code allows property owners to deduct the cost of 5-year assets, Asset Class 57.0 personal property, over 5 years versus the other longer time periods. Green Zip® Tape drywall partitions and enclosed components can then be depreciated 5.5 to 7.8 times faster. Further, with bonus depreciation, you can deduct 100% of 5-year property in year one, creating an even bigger tax savings to keep more of your cash flow and improve your project's NPV.

What are LEED credits?

LEED credits are points awarded by the U.S. Green Building Council for sustainable building practices. Green Zip® Tape qualifies for up to 11 LEED credits by enabling drywall reuse, reducing construction waste (26% of landfill waste is drywall), and eliminating toxic hydrogen sulfide gas from landfills. This helps buildings achieve LEED certification and demonstrates environmental responsibility ... without being an added cost.

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Green Zip® Tape Benefits & What Is It?