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 post-tax benefits of 5.5% to 9.5% of hard costs* versus typical cost segregation.

How does Green Zip® Tape work?

Green Zip® Tape works through a three-step process: Installation - Apply self-adhesive tape over drywall joints and screws, then float joint compound leaving a tab exposed. Demounting - Pull the tab to 'zip' through dried compound, exposing screws. Tax Benefits - Walls become 5-year property through cost segregation, creating immediate tax savings.

What is cost segregation?

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

How does 5-year depreciation work?

5-year depreciation allows property owners to deduct the cost of assets over 5 years instead of 39 years (commercial) or 27.5 years (residential). Green Zip® Tape partitions qualify as Asset Class 57.0 personal property, enabling 7-8 times faster depreciation. With bonus depreciation, you can deduct 100% in year one, creating immediate tax savings of 5.5% to 9.5% of hard costs* versus typical cost segregation.

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.

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.

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 in cost segregation studies.

How much tax savings does Green Zip® Tape provide?

Green Zip® Tape creates 5.5% to 9.5% of hard costs* versus typical cost segregation. 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.

All CRE Uses

Many commercial real estate uses can generate Green Zip® Tape tax benefits. However, the three groups below generate the most cost segregation benefits for YOUR real estate development. Learn more about 5-year depreciation and get answers to FAQs.