2014 Sales and Use Tax Law Change Information

2014 Sales and Use Tax Law Change Information 03/28/2014 Information on the following 2014 sales and use tax law changes is now  available on our website: Capital equipment Repair and maintenance labor Storage and warehousing services Telecommunications equipment More information about the tax law changes in general can be found on the  “Tax Law Changes” section of our website.

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Ernergency Planning: Preparing for Spring Storms

Key Points

• Storms and flooding can damage your facility and equipment.
• Advance planning will help to keep your staff safe and minimize damage to your facility.
• Continuity planning can keep operations going during an outage or after facility damage.

Source: www.sxc.hu

While spring is a time of renewal, storms and flooding can be devastating in terms of facility damage and lost revenues. Are you prepared? Storm readiness should include emergency action procedures to ensure the safety of your staff and facility, as well as adequate backup power to keep your critical equipment functioning in case of an outage.

Storm safety procedures

Follow these steps to keep your staff and facility safe from harm in the event of a spring storm:

• Create an emergency action plan that includes evacuation procedures, contact information for local first responders and emergency contact information for all employees.
• Keep supplies in an emergency preparedness kit; include water bottles, non-perishable food, blankets, first-aid supplies, flashlights and a battery-powered radio.
• Contact your state emergency management office for information about local shelters, evacuation plans, emergency exit routes and so on.
• Keep the grounds around your facility free of heavy debris that could be tossed around in the wind, and trim trees to prevent limbs from falling on buildings.
• Choose a safe area where occupants can gather if a storm or tornado warning is issued. This area should be located in a basement or a ground-level room with no windows.

Preventing damage from floods

Flooding can damage building structures, and destroy critical equipment and valuable records. The following measures can help reduce your risks from flooding:

• Develop a flood emergency plan. Features of the plan should include flood-proofing measures, emergency contacts, evacuation procedures and so on.
• Coordinate an emergency response team. Assign responsibilities to specific employees for carrying out different aspects of the flood emergency plan.
• Create an evacuation plan. Outline transportation procedures to avoid confusion among employees. Make sure all employees are familiar with the evacuation procedures and practice them regularly.
• Prioritize equipment and records. Keep a detailed listing of the equipment and records that must be moved to a higher elevation or removed from the premises.
• Consider flood proofing. Depending on the risk of flooding in your area, permanent flood-proofing measures may be a good investment. These include reinforcing walls, building flood walls and installing watertight doors and drainage measures to control the flow of water.

While flooding can occur almost anywhere, some areas are at higher risk. Flood insurance should be a part of every facility's flood prevention strategy, particularly for those facilities located in high-risk areas. For more information, contact your insurance carrier or the National Flood Insurance Program.

Keeping outdoor workers safe

Outdoor workers are exposed to a variety of weather conditions, but lightning poses a particular threat. Businesses with fleet vehicles or outdoor work crews should have a plan in place to keep workers safe in case of a lightning storm. The following are some general safety tips:

• Monitor weather conditions for reports of severe weather conditions in your area.
• Educate employees on safety procedures to be followed in case of severe weather, including what shelter is available to them.
• Inform employees to avoid metal objects, open areas or water.
• Make sure workers wait until at least 30 minutes after the last lightning strike before returning to work.

After the storm

While your electric power is very reliable, outages do happen. Facility damage can also result in long-term downtime. By planning ahead, you can keep your facility operating.
Backup power. Dependable backup power is necessary to maintain mission-critical equipment during an outage. Diesel systems are the most widely used and typically have the lowest initial costs. However, diesel generators use large on-site storage tanks that require refilling and must meet strict environmental regulations. Natural gas units often cost more to install, but offer a continuous source of fuel. Operate generators according to manufacturer's recommendations, and never connect generators to your electrical system; they can backfeed and endanger line workers.
Continuity planning. A continuity plan is a comprehensive statement of actions to be taken during (and after) a storm or any other emergency that interrupts operations. The objective is to continue operations and return to full capacity as quickly as possible. When creating a plan, ask yourself a few simple questions. What processes are essential in order to keep your facility running? What can be set aside? How would you accomplish critical functions and where would you get the necessary resources? Carefully evaluate your organization to identify which staff, procedures, materials and equipment are essential to remain in operation.

Simple Payback: Calculate the Savings

 

 

 

Key Points

• Simple payback is the most widely used financial analysis tool for energy-efficiency projects.
• To calculate simple payback, divide the total cost of the project by the annual energy savings.
• Payback is easy to calculate, but often provides a limited view of the benefits of an energy project.

An energy-efficiency upgrade is just one of many investment options to choose from when looking to reduce costs and increase revenue. There are a variety of analysis tools available for weighing the costs and benefits associated with an investment and helping you decide whether the choice is financially sound. Payback is the simplest and most widely used analysis tool.

How soon will I get my money back?

This is the most basic question in any investment. In analyzing an energy-efficiency project, payback tells you how long it will take until you realize a return on your investment. Simple payback looks at the amount of time—typically in years—for the total cash flow from a project to reach zero. Cash flow includes any initial and subsequent costs associated with an energy project, as well as any savings directly relating to it.
How does simple payback help you analyze different investment options? The following payback calculations for two lighting upgrade options provide an example. Option A has an initial cost of $12,000, and an annual savings of $4,000, while option B has a lower initial cost of $10,000, but an annual savings of only $2,500. To calculate simple payback (SP), divide the initial costs by the annual savings.

Which is the better investment? In this analysis, option A is the better choice, despite the higher initial cost. The investment is recovered in three years, rather than four years, as with option B.

Using simple payback

As a financial analysis tool, simple payback has a number of advantages. It is quick and easy to use, and readily fits into calendar-driven budgets and operating goals. Simple payback is best applied when:

• Costs are relatively small for your budget
• Only one significant operating cost, such as electricity, is involved
• Annual cash flows are steady
• There is a simple operating comparison, such as high-efficiency equipment versus a standard unit

Some equipment examples where simple payback provides useful insight for investment options include exit signs, lamps, lighting fixtures and building controls.
While it is a practical tool, simple payback often provides only a limited view of the potential benefits of an energy project. It does not account for cash flows after the payback period; therefore, it may short-change any positive, long-term value associated with the project. Also, this tool treats money in its present day value; ignoring the principle that money received in the future tends to be less valuable than money received today. More sophisticated financial analysis methods, such as net present value (NPV) and internal rate of return (IRR), examine the changing value of money and how it can influence actual return on investment.