Home 2022 June
Business Management Daily News Employment

HOLYOKE —  The Dowd Agencies announced the promotion of Jack Dowd from account executive to vice president of personal lines. Dowd has been with the agency since 2016 and represents the fifth generation to join the family business.

“I am happy to announce the well-deserved promotion of Jack to this new position,” said John Dowd Jr., president and CEO of The Dowd Agencies. “For the past six years, he has been a very successful commercial producer as part of our sales team and in this new role, he will further develop the personal lines department including marketing, customer service, client retention and operating procedures.”

Jack Dowd graduated from Saint Michael’s College with a B.S. in business administration and received his MBA from the University of Notre Dame Mendoza College of Business. A licensed property and casualty insurance producer, he achieved his certified insurance counselor (CIC) designation in 2019. In addition, he has participated in the 18-month Agents Sons & Daughters Training Program for underwriting at Quincy Mutual Insurance.

In his community, he serves on committees for the Brightside Foundation and the Make-A-Wish Foundation. He is also a member of the board of directors for Boys Scouts of America, Western Massachusetts Council, where he serves as the risk management chair.

“I look forward to taking on more responsibility within the business,” said Jack Dowd. “Continuing the Dowd insurance tradition is important to me, and I am proud to be part of the fifth generation of this family-owned operation. I look forward to working with our team on the new challenges this position will bring, as well as the opportunity to continue to learn and grow here.”

Conventions & Meetings Daily News Women in Businesss

HOLYOKE — The Young Professional Society of Greater Springfield (YPS) welcomed Elizabeth Hillis, business development associate at WWLP 22 News, to its Board of Directors.

“I’m excited to share my skills with the board and learn new things about the area,” Hillis said. “I’m thrilled to be able to help with the amazing events our organization has to offer. Being a Springfield YPS member is a great way to develop your network, meet other professionals, and become more involved in your community. I can’t wait to get started!”

Daily News Events Security Sports & Leisure Summer Safety Travel and Tourism

SPRINGFIELD — In preparation for Star Spangled Springfield on Monday, the Springfield Police Department will be detouring traffic in and around the area of the Memorial Bridge and Riverfront Park where festivities will be held this weekend.

On Sunday, at 11 p.m., the Memorial Bridge will close to all traffic, vehicular and pedestrian, to allow for the set-up of the Star Spangled Springfield fireworks display. The bridge will open again around 11p.m. on Monday.

At around 7:30 p.m. on Monday, the Springfield Police Department will begin to close roads in the vicinity of the Memorial Bridge in anticipation of the 9:30 p.m. fireworks display. Massachusetts State Police will close Exit 5 (formerly Exit 7) off of I-91 South as needed. Pedestrians will be restricted from sitting on I-91 Exit Ramps.

For public safety, the Springfield Police Department will enforce no pets, alcohol, smoking, bicycles, skateboards, rollerblades, fireworks, sparklers, and drones in and around Riverfront Park.

Business Management Daily News Women in Businesss

CHICOPEE — Bk Investments Hotel Group announced the promotion of Karen Warren to regional director of Operations.

Warren will be responsible for the management of the hotel portfolio. She will have responsibilities for a range of brands, including Residence Inn Chicopee, Hampton Inn Chicopee, Tru by Hilton Chicopee, and Holiday Inn Express in Brattleboro, Vt.   

Vickie Maryou has been promoted to general manager of the Residence Inn Chicopee to succeed Warren.

Daily News

MIDDLETOWN, CT — Liberty Bank is again teaming up with Save-A-Suit, a Connecticut-based nonprofit dedicated to helping veterans transition back to civilian life and achieve job security. The initiative supports local military men and women as they go through the job interview process and seek long-term employment.

Through July 15, the bank is collecting professional clothing for men and women, basically anything veterans can wear to a job interview and at work. Following the drive, Save-A-Suit staff and volunteers will sort the donations and distribute clothing at a quarterly event where veterans are also provided with wellness resources.

Liberty Bank has worked with Save-A-Suit since 2016. All Liberty Bank branches are currently accepting donations as drop-off sites for Save-A-Suit. Since inception in 2010, the nonprofit has helped ‘suit up’ and support over 5,000 veterans.

“Partnering with Save-a-Suit is one of the most rewarding experiences and sound investments we can make in a community organization that does so much year after year to help our veterans succeed after service,” said David Glidden, Liberty Bank president and CEO. “Our continued partnership with Save-A-Suit and other organizations allows us to show our deepest gratitude for the selfless service and sacrifice of our veterans who deserve only the best. Collectively, by giving back and spreading kindness, we are helping to ensure our veterans are fully prepared for the next chapter in their lives.”

Anyone can support local veterans through Save-A-Suit by dropping off new and gently used suits, blazers, dress shirts, dress pants, tops, shoes, and other business attire for men and women at the nearest Liberty Bank branch. Dirty, damaged or ripped items will not be distributed to veterans. Monetary donations for Save-A-Suit are also being accepted. For locations and branch hours, refer to www.liberty-bank.com and learn more about Save-A-Suit at: www.saveasuit.org

Business Innovation Daily News Economic Outlook Events

CHICOPEE — The Donahue Institute at UMass Amherst issued a study Tuesday showing that the Westover Metropolitan Development Corporation (WMDC) industrial parks in Chicopee and Ludlow and the civilian airport generate an estimated $2.2 billion a year in direct and indirect revenues.

The report was released at a press conference at a hangar at the base attended by dozens of area economic development leaders. It states that the industrial parks and airport have increased the number of jobs in the region, employing 3,600 people across the Hampden County area. Also, 69% of workers in the airparks earn more than $3,333 per month, compared to 55% of workers across the state. Business activity at WMDC-developed areas generates almost 8,500 jobs around Massachusetts annually.

The WMDC is a quasi-public development corporation formed in 1974 to convert military property in the vicinity of Westover Air Force base to productive civilian uses. WMDC has developed more than 1,300 acres of land in the area and currently operates the Westover Civilian Airport and three industrial parks.

The report notes that businesses within the airparks and the airport also contribute more than $6 million in local taxes. Businesses in Chicopee paid a total of $4.32 million in local taxes, while businesses in Ludlow paid $1.87 million in local taxes.

Creative Economy Daily News Events Luxury Living Sports & Leisure Tourism & Hospitality

SPRINGFIELD — MOSSO, the Musicians of the Springfield Symphony Orchestra, will celebrate the film music of John Williams on July 21, at 7:30 PM in Springfield Symphony Hall. MOSSO will perform excerpts from Williams’ scores to ET, Schindler’s List, Superman, Star Wars, Jurassic Park, and more. Some popular classics, including Rossini’s Overture to The Barber of Seville, Massenet’s Meditation from Thaïs, and Stravinsky’s Firebird Suite open the program.

Maestro Kevin Rhodes was music director and conductor of the Springfield Symphony Orchestra for 20 seasons before the pandemic. He returned to Springfield to conduct his musicians last October in front of a packed house at Symphony Hall, featuring many musical highlights from his tenure as their music director.

Rhodes was recently appointed Chief Conductor of the Slovak National Opera and Ballet in Bratislava, the capital city of Slovakia. In this role he will have a leading artistic position in a European city noted for its cultural diversity, while he continues to serve as music director for the Traverse Symphony Orchestra in Michigan, and as principal conductor of Boston’s Pro Arte Chamber Orchestra.

Rhodes has been a presence in the major musical capitals of Europe for over 25 years, with credits including The Paris Opera, The Vienna State Opera, The Berlin State Opera, La Scala of Milan, The Dutch National Ballet, The Verona Ballet, The Stuttgart Ballet, and many others.

Tickets for the concert, a MOSSO benefit, are priced at $60, $45, $25, and $10, and are on sale at: SpringfieldSymphonyMusicians.com. MOSSO sponsors include BusinessWest and Healthcare News, the Republican/MassLive, WWLP-22News & the CW Springfield, the Sheraton Springfield at Monarch Place, New England Public Media, and the Bolduc Schuster Foundation.

MOSSO is a 501(c)(3) not-for-profit organization, which is not a subsidiary of nor affiliated with the Springfield Symphony Orchestra Inc.

Daily News Education Events News

SPRINGFIELD —   The Naismith Memorial Basketball hall of Fame has announced the return of “Hoophall Hangouts” which will replace “60 Days of Summer,” the museum’s annual summer program featuring family-oriented fun.

Starting on July 1 and running through August 31, the Hall of Fame will host various appearances from basketball players, personalities, and Hall of Famers.

“The hall is excited to bring summer programming back to Springfield starting in July,” said John L. Doleva, president and CEO of the Basketball Hall of Fame. “Paired with our newly renovated museum, Hoophall Hangouts will elevate the experience for our museum guests and will hopefully leave everyone with fantastic memories of their visit.”

On August 12, Bob Hurley Sr. (Hall of Fame Class of 2010) will accompany his son, Dan Hurley head coach for UConn’s men’s basketball team for a special father/son appearance. Throughout the summer, museum goers will also have the opportunity to hear from Class of 2022 Inductees Tim Hardaway, Bob Huggins, and George Karl, as well as hall of famers Grant Hill from the Class of 2018 and Jay Wright from the Class of 2021. Head coach Frank Martin from UMass will also be making an appearance.

“Hoophall Hangouts” appearances are free of charge to museum guests, however some appearances will have select VIP opportunities. “Hoophall Hangouts” will be scheduled throughout the summer and will occur at 1 p.m. For more information, visit www.hoophall.com/hoophallhangouts or follow @hoophall on Twitter, Facebook and Instagram.

Daily News Events News Sports & Leisure Tourism & Hospitality

AMHERST — The Amherst Business Improvement District has announced the lineup for the second annual Friday Night Summer Concert Series on the South Common. The series is sponsored by Encharter Insurance.

On July 22, the BID presents local artists Dawn Lepere and Jeff Starns opening for blues singer-songwriter Eric Lee (LINK). On July 29, UMass will return to the Common for the second year of Jazz in July in downtown Amherst, an event featuring UMass staff, students, and a couple of ‘ringers.’ On August 5, the Grammy-winning Children’s performer MISTER G will take the stage before The Soul Magnets appear. Wrapping up the series on August 12 will be the classic country act the Rosie Porter Trio, followed by the pop-rock Maxxtones.

These events will be free for all, starting at 6 p.m. These evenings will also host local brewery White Lion Brewing, local cider makers Artifact, and Black Birch Vineyards wine for the over-21 guests. Crème Bru.LA will be joining the fun, and there will have a charcuterie station.

Daily News Events Sports & Leisure STUFF Made in Western Mass Women in Businesss

SPRINGFIELD — Springfield Union Station is again hosting a music video of The Star-Spangled Banner sung by local talent Vanessa Ford, who is known as “The Songstress of Springfield.” Also this 4th of July, is a music video by Kayla Staley, a student at the Springfield Conservatory of the Arts.

Staley performs America the Beautiful in her video, which also includes interior drone video of historic Springfield Union Station.

The videos were planned, recorded and produced by Darcy Young and Mary Cate Mannion, both of whom are producers at New England Corporate Video, a division of GCAi Digital PR and Marketing. GCAi will run both videos for Springfield Union Station on its Social Media channels starting on July 1, and they will run through July 4.

“The 4th of July is very special for all of us in Springfield, and Union Station wanted to add to the celebration,” said Nicole Sweeney, property manager for Springfield Union Station. “Vanessa and Kayla are local treasures.”

Ford began singing in the church choir at the age of seven, and she loves every genre of music. She is an aficionado of classical music, jazz, pop, traditional hymns, and contemporary gospel music. She has performed the National Anthem for many local college sporting events, at Springfield Police Academy Graduations, and for a multitude of high-profile local and national events.

Staley is a 2022 graduate of Springfield’s Conservatory of the Arts and has been singing since she was 12. She enjoys singing at retirement communities and other public venues.

Daily News Hampshire County Super 60

SPRINGFIELD The Springfield Regional Chamber (SRC) is seeking nominations for its annual Super 60 awards program. Super 60 recognizes the success of the fastest-growing and privately owned businesses in the region. Nominations must be submitted by August 5.

Each year, Super 60 identifies the top-performing companies in this region, based on revenue growth and total revenue. In 2019, one-quarter of the Total Revenue winners exceeded $30 million, with all the winners combining for more than $720 million in revenue. In the Revenue Growth category, all winners had growth above 21%, and 50% of the top 30 companies grew by more than 50%.

“Small businesses are the backbone of our region and have been especially resilient throughout the pandemic,” said Springfield Regional Chamber President Diana Szynal. “We’re thrilled to bring this awards program back to honor our region’s businesses and recognize their successful navigation through the past two years.”

To be considered, companies must be independently and privately owned; based in Hampden or Hampshire counties or be a member of the Springfield Regional Chamber; have revenues of at least $1 million in the past fiscal year; and have been in business for at least three full years. Companies are selected based on their percentage of revenue growth over a full three-year period or total revenues for the latest fiscal year.

Companies may be nominated by financial institutions, attorneys, or accountants, or they can self-nominate. Along with an application, nominators must provide net operating revenue figures for the last three full fiscal years, signed and verified by an independent auditor. All financial information must be reported under generally accepted accounting principles and will be considered confidential.

Nomination forms can be found on the Chamber’s website and can be submitted by faxing to SUPER 60, Springfield Regional Chamber, (413) 755-1322. Nomination forms must be submitted no later than August 5. The Super 60 awards will be presented at the annual luncheon and recognition program on Oct. 28, at the MassMutual Center in Springfield.

The Super 60 award luncheon attracts more than 500 business leaders each year. Super 60 sponsorships are now available. For information, call (413) 755-1309 or e-mail Szynal at [email protected].

Biz Tips & Industry News Coronavirus COVID-19 Daily News Economic Outlook

BOSTON The echoes of the COVID-19 global health crisis were apparent in the latest edition of The Index of the Massachusetts Innovation Economya report that tracks the strength of the Commonwealth’s tech and innovation sectors.

Even with net job losses in nine of 11 key tech sectors in 2020, the Massachusetts tech and innovation economy continued to be a top state in terms of total R&D investment ($36 billion in 2018, second only to California), record venture capital investment ($15.8 billion in 2020), and increased investment in higher education per student (up 29.4% since 2015).

Despite the data capturing the worst of the COVID-19 recession, all three of the sectors below were well above their 2015 employment levels, with the first two having actually added jobs during 2020:

• Biopharmaceuticals and Medical Devices (+37.8% since 2015);

• Scientific, Technical, & Management Services (+25.4% since 2015); and

• Software & Communications Services (+16.8% since 2015).

The 2021 Index found the following areas were bright spots for the innovation economy:

Leading Higher-Ed:

• A marked increase in higher education investment, with appropriations per student up 29.4% since 2015, greater than any of the LTS save for California;

• Highest number of degrees conferred per capita among the LTS (18.1 per 1,000 residents);

• 47.6% of the workforce has at least a bachelor’s degree, higher than any other state and well above the U.S. average of 34.4%.

R&D and VC Investment Rising: 

• Massachusetts is one of the leading producers of patents per capita, with 1,275 utility patents per million residents in 2020, second in the LTS;

• Of the 5 LTS with more than $1 billion in annual investment in 2015, Massachusetts saw the fastest growth in VC funding, up 88.3 percent from 2015 to 2020.

Healthcare Research:  

• $3.3 billion in National Institutes of Health (NIH) funding in Massachusetts in 2020;

• $5,659 of NIH funding per $1 million GDP;

• 11 Massachusetts research institutions received more than $100 million in NIH funding in 2020.

“While the pandemic’s impacts were stark, the investments made by the private and public sectors continue to fuel growth in the areas that are driving our innovation economy,” said Pat Larkin, director of the Innovation Institute at MassTech. “On education, we’ve seen the clear rise in higher-ed investment by the state, which is a key driver for our talent development pipeline. The Index also points to the potential for further strengthening, as the state expands Innovation Pathways programs at the K-12 level, efforts which will further train students for careers in advanced manufacturing and robotics, which desperately need talent.”

All 10 leading tech states saw net job losses in key sectors during 2020, including in Massachusetts. Since 2015, the Commonwealth’s innovation job losses were concentrated in a few key manufacturing sectors, including: Diversified Industrial Manufacturing (- 6.9%); Advanced Materials (-7.4%); and Computer & Communications Hardware (-16.9%).

To download a copy of the Index of the Massachusetts Innovation Economy, or to access interactive copies of the graphs and charts from the report, visit masstech.org/index.

Daily News

WARE — Country Bank recently announced that Tracey Wrzesien, assistant vice President, retail banking officer, is the recipient of its 2021 President’s Platinum Award.

The bank’s recognition program, “CB Shines,” encourages team members to look for coworkers who embody the bank’s corporate values of integrity, service, teamwork, excellence, and prosperity (iSTEP). Within this program, members can receive different levels of recognition: Silver Spotlight, Gold Star, and the President’s Platinum.

“Country Bank’s team members contribute to the bank’s success in so many ways throughout the year, and we are delighted to celebrate their contributions,” said Paul Scully, president, and CEO of Country Bank. “Tracey embodies the bank’s corporate values. In addition, her nominator recognized her contributions to the organization, customers, and coworkers. Our team is extremely dedicated, knowledgeable and committed to delivering the best service to their external and internal customers.”

Daily News News

SPRINGFIELD — Leadership Pioneer Valley recently welcomed five local leaders to its board of directors:

• Claudia Pazmany, executive director, Amherst Chamber of Commerce;

• Ryan Barry ‘17 LPV, partner, Bulkely Richardson & Gelinas LLP;

• Kristin Cole ‘13 LPV, director of Workforce Training, Greenfield Community College;

• Katisha Gallishaw, owner, KG Virtual CFO;

• Hope Ross-Gibaldi, executive director, Valley Venture Mentors

Leadership Pioneer Valley is currently recruiting for the 11th cohort to begin in September. Individuals interested in applying can find applications online at  www.leadershippv.org.

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest, in partnership with Living Local, has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Go HERE to view all episodes

Episode 118: June 27, 2022

George Interviews Diana Szynal, the incoming president of the Springfield Regional Chamber of Commerce

Diana Szynal

BusinessWest Editor George O’Brien talks with Diana Szynal, the incoming president of the Springfield Regional Chamber of Commerce. The two discuss her new appointment, the business scene in Greater and Springfield, and the challenges and opportunities facing chambers of commerce today. It’s all must listening, so join us for BusinessTalk, a podcast presented by BusinessWest in partnership with Living Local and sponsored by PeoplesBank.

 

 

Sponsored by:

Also Available On

Daily News

From the day he took the helm with the fledgling Springfield Thunderbirds hockey team, Nate Costa, now the president of the franchise, talked about the importance of winning to the ultimate success of a team.

Opinion

Indeed, Costa, who came to Springfield following management roles with several minor league sports operations, often spoke about the importance of presentation and the overall experience when it came to how well a team could capture the hearts and minds of a region or community — and thrive financially. But ultimately, he said there is no real substitute for winning. A team can have endless promotions, bring in big names as guests, and offer special prices on hot dogs and beer, he implied, but in the end, it would have to win to really break through.

The events of the past few several months, and especially the past few weeks, have proven Costa right.

As the Thunderbirds made their way to the Calder Cup finals against the Chicago Wolves, the team moved to a new and much higher level in terms of visibility and presence, for lack of a better term, in the Greater Springfield area. While T-Birds ultimately lost the series, four games to one, including the last three at home, it was a clear winner on every other level.

Let’s start with the games themselves. The downtown area was electric on game nights. Some fans would arrive an hour or two before the game started. There was some tailgating in some of the parking lots and larger crowds in many of the area restaurants.

The weekend games that closed out the series were sell-outs, and there were high levels of energy in the MassMutual Center.

Overall, the Thunderbirds were front of mind for the past month or so as they progressed in the playoffs to the finals. They were the lead story on local sports pages and the local news shows, but there was more than that.

People were talking about them — at the office, in coffee shops, and at the many events that have been staged in the region over the past several months as the long-awaited return to normalcy from the pandemic has moved to a different level. And they are still talking about them.

And while people were talking about this team, they were reminiscing about championship teams from 30 and 50 years ago. Hockey, for at least a little while, became king.

The best news is that interest in the T-Birds has moved well beyond talk. Season-ticket sales are far ahead of the pace for previous years, and they, as everyone knows, are one of the key cornerstones to success. More corporate support is certain to follow.

While the Thunderbirds have always had a presence in Springfield and the region, they have now officially arrived. And this bodes extremely well for a city that will need this team to play a big role in its full recovery from the pandemic and ongoing efforts to make downtown a place to not only work, but live.

The T-Birds did not bring home the Calder Cup in 2022. But they may have succeeded in an even bigger game, if one can call it that.

They have broken through and truly captured the attention of the region. That makes them big winners.

Daily News

MONSON — Monson Savings recently marked its 150th anniversary by unveiling a historical marker at the original location of Monson Savings Bank in Monson. Massachusetts.

The event took place on June 1, a day chosen since it was the first day Monson Savings Bank accepted deposits in 1872. Guests gathered nearby the Monson Town Offices, where the original granite building stood that housed Monson Savings Bank at its incorporation in 1872.

A granite block from the original building reading “BANK” was expertly placed at the base of the historical bronze plaque marker located on a pole. Surrounding the display was a new landscaped area.

To begin, Dan Moriarty, President and CEO of Monson Savings Bank, addressed the guests, thanking them for joining. He read aloud the text on the plaque which remained concealed with a custom-made cover.

Moriarty read aloud, “In the mid 1800’s demand for banking service(s) became essential in Monson, Massachusetts due to the flourishing population, industries, and retail establishments. To afford working men and women an opportunity to save, Monson Savings Bank was incorporated on March 27, 1872, enacted by the Senate and House of Representatives. At this location stood a small, granite banking house on the corner of Main and State Streets that housed the home of the local community bank.”

Daily News

LONGMEADOWDue to the bad weather forecast for today, JGS Lifecare  a  healthcare system serving seniors and their families in western Massachusetts, is postponing its annual Frankel-Kinsler Classic Day of Tournaments fundraiser at Twin Hills Country Club in Longmeadow to July 11.

This will be the organization’s 41st annual tournament. In addition to golf, the tournament includes bridge, canasta and mahjong tournaments.

The tournament is named in memory Michael Frankel, a past chairman of the JGS Board who passed away in 2013 at the young age of 49. It is also named in honor of the Raymond and Herman Kinsler Families, longtime supporters of JGS Lifecare.  Last year, the tournament was held in memory of Seymour Frankel, Michael’s father and a long-time volunteer and JGS Ambassador. “The Frankel and Kinsler families have provided extraordinary leadership over the years to JGS Lifecare,” said Susan Halpern, vice president of development at JGS Lifecare. “This tournament is a tribute to them and helps us continue their extraordinary legacy of caring and good deeds.”

The JGS Lifecare signature tournament brings the community together for a day of fun, food and friendship in support of the care of our community’s elders. More thyan 200 people participate in one of several tournaments, including golf, bridge, canasta and mahjong, to help raise funds to support enhanced programming and services for residents, as well as to support staff scholarships for career and skills advancement. Last year over $115,000 was raised through sponsorships, donations and player registrations.

Event sponsors include The Haberman, Katz and Webber Families; Harry Grodsky & Co.; Kleeberg Sheet Metal & Mechanical Services; Steven and Georgianne Roberts; HUB Retirement & Wealth Management formerly Epstein Financial Services; PeoplesBank; The Albert & Judith Goldberg Family Foundation; Alekman DiTusa, LLC; Century Investment Company; CliftonLarsonAllen, LLP; Donna Frankel; Kaste Industrial Machine Sales, Inc.; NEFCO; ProCare LTC Pharmacy; and Spartan Auto Care Centers.

Registration begins at 11 a.m. with tee-off at noon. The entry fee if $275 and includes 18 holes of golf, a barbecue lunch, dinner and an ice-cream sundae bar.

To register, visit www.JGSLIfecare.org/frankel-kinsler  or contact Susan Halpern at [email protected] or (413) 537-1367.

Daily News

AGAWAM — Six Flags New England and its sister park Six Flags Discovery Kingdom located in San Francisco set a friendly wager for the recent NBA Finals series. While both parks are proud of their local Celtics and Warriors going head to head, the Golden State Warriors won the NBA Championship game series.

Six Flags New England begrudgingly fulfilled its wager against its sister park, Six Flags Discovery Kingdom this past weekend, renaming its iconic New England SkyScreamer to the Golden State SkyScreamer.

“We tip our hats to our friends and colleagues at Six Flags Discovery Kingdom and the recent win of their beloved Warriors,” said Park President, Pete Carmichael. “We New Englanders are all too familiar with being crowned champions (17 titles) and welcome a rematch between the two coasts very soon.”

Daily News

WESTFIELD — Westfield Bank President and CEO James C. Hagan on Thursday presented Springfield Urban League CEO Henry M. Thomas III with a $100,000 contribution to help launch a $7.5 million capital campaign to ensure the future of historic Camp Atwater.

“This contribution represents our firm commitment to the Urban League as it reimagines and reinvigorates an invaluable Massachusetts institution that has played such an important role in the lives of Black youth in Western Massachusetts and beyond for a century,” said Hagan. “Westfield Bank is very proud to come on board at this time of the campaign and we encourage other corporations, foundations, and individuals to join us in supporting Camp Atwater’s centennial. Creating opportunities for young people the way that Camp Atwater has done for decades is more essential than ever and the bank is excited to play a role in bringing this project to life.”

Said Thomas, “on behalf of the Springfield Urban League, Camp Atwater, and our thousands of alumni and families, I want to thank Westfield Bank for stepping up so generously at this early juncture. Westfield Bank has always been a staunch supporter of the Urban League and we are sincerely grateful to them for this terrific early lead investment in the campaign and their ongoing partnership with us as we strive to create a more equitable and just society.”

The Urban League has owned and operated Camp Atwater, located in North Brookfield, since 1921, making it the longest operating Black-owned summer camp in the nation. In its many years of service, Camp Atwater has had a profoundly positive impact on the lives and careers of the vast majority of the camp’s more than 55,000 alumni.

Galvanized by the needs of the Black community in Massachusetts and beyond, the Urban League is embarking on the $7.5 million Centennial Campaign to reimagine and reconfigure Camp Atwater so that it may continue as a foundational experience for campers for the next hundred years. Already recognized for its significance by being listed on the National Register of Historic Places, the Urban League is seeking to capitalize on the opportunity for Atwater to provide the preeminent camp experience for the African American community, and to develop ongoing generations of leaders by providing a unique blend of enriching programs and activities within a setting that is at once nurturing and challenging, while fostering self-discovery and growth.

With Westfield Bank’s support, as well as that of other early donors, significant work on the Camp’s buildings and grounds is scheduled to begin this summer and continue onward so that Atwater can welcome overnight campers back in the summer of 2023.

 

Daily News

SPRINGFIELD — Springfield College President Mary-Beth Cooper will serve as a voting member on a new NCAA Board of Governors, the highest governance body of the NCAA. The board members will assume their duties on August 1.

Cooper, the lone Division III delegate, was selected by the NCAA following the new NCAA constitution that was adopted in January by member schools and conferences.

The new board includes nine voting members: four from Division I (at least one school president and one conference commissioner), one from the Division II Presidents Council, one (Cooper) from the Division III Presidents Council, two independent members and one graduated student-athlete.

Cooper became the 13th president of Springfield College in August 2013. Known for her volunteer leadership, Cooper has served on the President’s Council of the NCAA, serves on the NIL Committee: NCAA Federal and State Legislation Working Group, and has been the president of the New England Women’s and Men’s Athletic Conference (NEWMAC).

Daily News

AGAWAM — The Local Farmer Awards, a funding initiative launched in 2015 by the Harold Grinspoon Charitable Foundation (HGCF) and Big Y Foods, reached the million-dollar milestone in May.

Over the past eight years, more than 470 grants have been made to farmers in Western Mass. and the Berkshires. Along with the Big Y and HGCF are 25 generous community and individual donors including Ann and Steve Davis, Charles and Elizabeth D’Amour, PeoplesBank, DeNucci Group at Merrill Lynch, Farm Credit East, HP Hood LLC, Audrey & Chick Taylor, Baystate Health, Country Bank and others.

“Hitting a million dollars in giving is a proud milestone in providing help, support, encouragement to our local farmers and their families,” said Big Y President and CEO Charles D’Amour. “The multiplier effect of these awards ripples throughout our Western Mass region and provides the important underpinning of our regional economy.”

Last month, 74 farmers primarily located in Western Massachusetts received the 2022 awards — checks of up to $2,500 for infrastructure improvements. Totaling $165,500, these grants help sustain robust projects related to growing, harvesting, and processing. Maple farmers at Justamere Tree Farm in Worthington launded the installation of its new vacuum monitoring system. “The award will enable us to monitor the vacuum within our entire 100-acre sugarbush which negates the need for endless hours of searching for leaks in poor weather conditions while also reducing energy costs. It will be a game changer for us.”

Program director Cari Carpenter said that the publicity generated by the Local Farmer Awards draws much needed attention to the productivity of all farms in the region, whether or not they have been award recipients. “We want to celebrate and encourage every farm in Western Mass and the Berkshires, not only our winners. Happily, the program returned in March to an in-person appreciation party, including all 120 farms within our applicant reach this year. Donors were able to grasp the impact of what they are doing — and the potential to do even more.”

Daily News

EAST LONGMEADOW W.F. Young, a global leader in animal health products such as Absorbine® and The Missing Link®, received two awards at the 2022National Animal Supplement Council Annual Conference, the NASC Visionary Award, acknowledging the animal wellness company as an originating/founding member, and the Visibility Award, for Outstanding Promotion of the NASC Quality Seal.

The National Animal Supplement Council is a nonprofit trade organization dedicated to protecting and enhancing the health of companion animals and horses throughout the United States. Founded in 2001, NASC is an all-industry association of stakeholders concerned with the issues surrounding the supply of health supplements for animals not intended for human consumption, such as dogs, cats, and horses.

“We’re honored and grateful for the NASC’s recognition, it has been a pleasure to work with them for over 20 years,” said Jaime McKinley, president of W.F. Young. “It’s important for us to align with an organization that cares about the wellness of our products as much as we do. We hope to maintain our relationship for years to come, and in that partnership, continue to assure customers that their pets receive the best quality and care.”

The 2022 NASC Annual Conference took place recently in St. Louis, Mo. at the Chase Park Plaza Royal Sonesta Hotel. The event featured networking opportunities for all the attendees, breakout sessions for science, compliance, business, and marketing, as well as exhibiting from sponsors, and a dinner and awards gala. Audra Mulligan, director of Regulatory Affairs and Development, was present at the ceremony and accepted the awards on behalf of W.F. Young.

 

Community Spotlight

Community Spotlight

By Mark Morris

Alex McGill says his company considered other options, but decided it wanted to be in East Longmeadow

Roughly 60 years ago, McGill Hose and Coupling opened on Benton Drive in East Longmeadow. About six months ago, it moved into a new building around the corner on Industrial Drive that is more than double the size of its old location.

McGill is a custom fabricator of hoses and tubes for a wide variety of industries, everything from fuel delivery to food and beverage to pharmaceuticals. In short, any industry that requires hoses and tubing can be served by the company. Alex McGill, vice president at McGill, said the pandemic and supply chain challenges have caused some hiccups, but at the same time brought more business from pharmaceutical companies, especially in the Northeast.

“The opportunity came about because of the level of service we offer and because we are accessible to our customers,” McGill noted. “Our willingness to work around the clock to make sure customers get what they need has won us quite a lot of business over the years.”

While the company could be located anywhere, and could have moved anywhere when expansion became necessary, McGill has chosen to remain in East Longmeadow.

“We’ve grown to love the neighborhood and our neighbors,” he said adding, “we rely on our retail business where people can come in for their supplies. It’s also a friendly location for our employees.”

Secure Energy Systems has a story that is similar in many ways. The company was located on Somers Road until 2016 when a fire destroyed the company’s building. Nearby Cartamundi provided temporary space for Secure Energy while it sought out a new location.

“We’ve grown to love the neighborhood and our neighbors, we rely on our retail business where people can come in for their supplies. It’s also a friendly location for our employees.”

“The owners of the company had purchased a property in Enfield, but it just didn’t feel right to them,” said Erin Bissonnette, senior energy sales representative for Secure Energy. “They wanted to stay in East Longmeadow because they felt this was their home and they didn’t want to leave.”

So, in 2018 Secure Energy found the right space a few doors down from the manufacturer Cartamundi on Shaker Road and bought the building that formerly housed the laser company Biolitec.

These stories are among many others that relate how East Longmeadow has become an increasingly popular home for families and businesses alike. As for the ‘why’ this is happening — there are many reasons for that, including quality of life, a still-favorable commercial tax rate, available land and property, and, overall, a pro-business approach that is prompting new businesses to settle there, existing businesses to stay, and entrepreneurs to find space there to get started, as we’ll see.

And while businesses owners are choosing to invest in the community, East Longmeadow is making investments in itself.

The East Longmeadow Town Council recently passed the Fiscal 2023 budget, which includes funding for 19 capital projects in town. One prominent project involves a major redevelopment of Heritage Park. According to Town Manager Mary McNally, the initial design and permitting phase of the redevelopment will come from Community Preservation monies. Funding from the American Rescue Plan Act (ARPA) will cover the other 18 projects.

“They range from investing in the town’s IT needs to police cruisers, a fire engine and DPW trucks,” McNally said. “There are enough projects to stimulate lots of economic activity in town, providing we can get the contractors and the materials to get it all done.” 

For this, the latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at how all these many kinds of investments are paying off for East Longmeadow.

 

Right Place, Right Time

After a renovation that Bissonnette described as “down to the steel beams” Secure Energy, which specializes in the procurement of natural gas and electricity for its commercial and industrial clients, now has a modern, airy office with amenities for employees such as a kitchen, large gym, and an outdoor gathering space. And there is plenty of room for growth.

“We negotiate with the same suppliers the utilities use and lock in the price and a term for the energy commodity, whether it’s for 6 months or 60 months,” Bissonnette said.

“These are women who have had certain passions and interests and now they are trying them out. They are exploring their ideas to see where it will all lead. It’s exciting to see.”

As a result, a business can know what their energy will cost for the length of the term, a service more valuable these days than ever before.

“Some clients will forget they extended their term beyond 2022 and will call us in a panic,” Bissonnette said. “Then we reassure them that our energy advisors grabbed the lowest prices months ago and locked in that rate. As a result, customers who were concerned are now very happy.” 

Secure Energy is part of a growing, very diverse business community in East Longmeadow, one that takes full advantage of many amenities, including a favorable location near population centers and the border with Connecticut, as well as land on which to build and grow.

McGill Hose and Coupling is another example.

Erin Bissonnette

Erin Bissonnette says Secure Energy wanted to stay in East Longmeadow, because it “felt like home.”

As McGill employees settle into its new location, Alex McGill said the company’s next goal involves growing the business and the team working in East Longmeadow.

“We’re putting more of an emphasis on our employees,” McGill said. “We’re building a team atmosphere that has become a real catalyst for our recent growth.”

Using the strategy “if you treat your employees right, they will treat your customers right” is already paying off.

“We are poised for a nice shot of growth,” McGill continued. “We are paying attention to the future and investing in our employee culture serves as the guiding light for our growth.”

The same sentiments apply to the town and many of the investments it is making.

Indeed, as part of the budget, the town council also approved hiring for 13 positions in various town departments. McNally said Town Hall is scheduled to get 5 full time and one part time position out of the total.

“The staff at Town Hall work very hard to get things done,” McNally said. “Life would be easier if we had more staff, so I’m very pleased the council saw fit to fund these positions.” The extra staff presents a challenge of finding room where the new hires can work. The town is currently trying to find a balance between locating a department or two to another building without spreading municipal offices all over the town.

Meanwhwhile, a new high school represents a longer-term investment that is moving through town and state approval processes. The town will host three visioning sessions to show residents what a new school could look like and to solicit ideas from the public on what they would like to see for a new high school.

“These will be hybrid meetings so the public can take part in person or virtually,” McNally said. “I hope we get a good turnout and that people will participate.”

One of those 18 ARPA projects includes roof repairs to the current high school.

“This is a fix that can’t wait for the years-long process of building a new school,” said McNally.

Another investment trend in East Longmeadow involves people investing in themselves.

Grace Barone, executive director of the East of the River Five Town Chamber of Commerce, said recent networking events she has held are attracting many young entrepreneurs. Barone said new pop-up shops are beginning to appear and most of them are women-owned businesses.

Grace Barone

Grace Barone

“These are women who have had certain passions and interests and now they are trying them out,” said Barone. “They are exploring their ideas to see where it will all lead. It’s exciting to see.”

One of those entrepreneurs recently leased space in the Reminder Building, where the Chamber office is also located. Chris Buendo, owner of the building, said he has welcomed startups to the Reminder Building and now has an eclectic mix of tenants. In fact, he allows tenants to provide a 60-day notice to break their lease instead of holding them to a typical one year or longer term.

“The shorter notice takes a little pressure off a start-up company,” said Buendo. “Rather than signing a long-term lease that they may later regret, I have faith that what they are doing is going to work so I want to relieve some of that pressure so they can succeed.”

The height of the pandemic was a scary time for commercial real estate, and Buendo said he lost many tenants who abandoned their office space to work from home. As the world slowly emerges from COVID concerns, he said business has come back.

“The good news is I’m getting calls again,” Buendo said. “Working from home is nice but it’s not a perfect scenario, so people are calling me to say it’s time to return to the office.” And return they have, as Buendo noted he has only one available space in the Reminder building.

Chris Buendo

Chris Buendo says growing interest in office space in the town is a sign of progress.

At the town level, in addition to the new jobs approved by the council, several key positions have turned over because of retirements and career changes. McNally explained that over the last year the town has brought on a new planning director and a new library director. McNally herself plans to retire when her contract ends on June 30.

At press time the town had chosen a new town manager and was in the process of negotiating the final contract before announcing the new person.

 

The Bottom Line

As for McNally, her next move is well planned.

“I’ll be on the golf course, at the ocean, or with my family, not necessarily in that order,” McNally said. “I’m a lawyer by training so I could re-new my license if I get bored, but for now I’m ready to call it a day.”

As she prepares for retirement, McNally is pleased that thanks to investments from the private sector and the town, East Longmeadow is in solid financial shape going forward and in a position to continue the remarkable pattern of growth it has seen in recent years. u

Features

A Changing Dynamic

By Amy Roberts

It is no secret that the workplace has changed significantly over the past several years, requiring employers to adjust their operating principles to keep pace with what employees need and want. While many have labeled this time as the Great Resignation, this movement might better be explained by the term…the Great Re-evaluation!

For whatever the reason, and there have been plenty in these last few years, people are re-looking at how they work, what they do for work, and the impact their work has on the world around them. Employees expect that their job brings purpose to their lives and expect an employer to help them meet this need. If they review their current job and don’t find the connection with their own purpose, they are leaving for a role in an organization that they feel can provide them with this crucial requirement.

Amy Roberts

Amy Roberts

When attracting candidates and holding on to talent, Employers are being challenged to improve their impact on just about everything. The people they employ, the people they serve and the value they bring to the greater good. This challenge has led many employers to look at their impact on the world and revamp their entire value system in order to compete.

Attractive benefit programs and competitive pay will only get an organization so far in an evolution of their value. Organizations have to consider more broadly their impact on the lives of people. All the people! Not just the people who buy their products or services or their shareholders or the people that work for them. This means caring about the communities in which they are a part and also caring about the world beyond their headquarters, subsidiaries, and offices.

While there are many ways to create an employer value proposition that helps an organization stand out and compete for talent, perhaps the most impactful is to establish a corporate purpose that considers the company’s role and contribution to society. In the development and communication of this purpose an organization can articulate their value to an employee and in turn attract people who see value in being a part of the work being done by the organization.

Once established it is critical to provide employees with meaningful ways to reflect on the company’s efforts and their impact as well as ways to participate in these efforts. In other words, employees want to be a part of a company that strives to make the world a better place and they want to do the work that helps to make it so.

Another aspect for employers to consider is how work gets done within the organization and the systems and structure around work. While more a practical component of an employer value proposition than a corporate purpose, this area of work has become increasingly scrutinized by the workforce. People want to be challenged in their work, excited by the mission of an organization, and contribute to the outcomes of the organization in a way that makes sense for them.

In order to do this, an employer has to consider the person doing the work as an important aspect of how the work will be done. This represents a huge paradigm shift in workforce planning and it requires an organization to examine its policies and procedures of work to determine how to go about this in a consistent and sustainable way.

We all know it would be impossible for an organization to design its work structure to handle all of the elements of a person, so one approach an employer can take is to set some basic tenets of how work gets done, usually in the form of establishing goals and outcomes required of each role in the organization and then be flexible enough to meet people where they are when it comes to how that work gets done. This can look different depending on the organization type and can vary even within an organization depending on the position. Flexibility in the workplace isn’t new, but the fact that it is a requirement for many people in the workplace has caused many organizations to rethink work hours, days of work, and the location of work.

In different times companies were doing great things to provide an inviting and calm workspace with nice desks, décor that complimented the values of the organization and convenience amenities like a café, gym or dry cleaner. Now an employer is seriously considering four-day work weeks, 35-hour schedules, remote work, hybrid work, work from anywhere, and unlimited time off, just to name a few.

The stakes are higher than ever to implement programs that provide an organization with the desired outcomes to be successful in a way that allows employees to live a meaningful and well-balanced life. u

 

Amy Roberts is executive vice president and chief human resources officer at PeoplesBank.

Construction

Increase Pushes Level of Planning Above Most Recent Cyclical High

A measure of nonresidential building projects, the Dodge Momentum Index provides an analysis of the construction industry. Analysists delivered some bright news recently with the announcement that the Dodge Momentum Index increased 7% in May.

The index measures data about nonresidential building projects planned, to track spending in the sector. For May, the institutional component of the Momentum Index rose 9%, and the commercial component increased 6%.

May’s reading came in at 176.2, up from April’s 165.2.

According to Dodge Data & Analytics, May’s increase in the Dodge Momentum Index pushed the level of planning above the most recent cyclical high in November 2021.

During the month of May, commercial planning was led higher by an increase in office and hotel projects. Institutional planning saw a boost in education and healthcare projects entering planning. On a year-over-year basis, the Momentum Index was 17% higher than in May 2021. The commercial component was 24% higher, and the institutional component was 8% higher than one year ago.

A total of 19 projects with a value of $100 million or more entered planning in May.

The leading commercial projects were:

• $333 million Bitcoin Mining Facility (a large computing building) in Corsicana, Texas

• $300 million Gun Lake Hotel and Resort in Wayland, Mich.

The leading institutional projects were:

• $250 million Drexel University life sciences building in Philadelphia

• $160 million Colorado Research Exchange life sciences campus in Broomfield, Colo.

Despite higher interest rates and fear of recession, nonresidential building projects continue to steadily enter the planning cycle, according to Dodge. While higher prices and labor shortages may result in projects reaching groundbreaking later in 2022 or early 2023, they provide hope that the construction sector will be able to withstand a potential economic slowdown fed by higher interest rates.

Accounting and Tax Planning

And Why Does it Matter to My Business?

By Colleen Berndt, CPA

 

State tax nexus refers to the amount and type of business activity that must be present before the business is subject to the state’s taxing authority. Every state has its own set of tax laws and required filings. In recent years, the whole concept of state nexus for sales tax and income tax has dramatically changed.

Traditionally, state tax was based on more of a physical presence test. Thus, if your business did not employ people and property in a particular state, then most often the business would not be required to register or file in that state.

As with many laws, it takes time for states to address issues and make changes for how business is transacted in the modern world. How we conduct business is changing at a faster and faster pace. The COVID-19 pandemic generated unprecedented e-commerce growth in various economies across the globe and is anticipated to continue to grow at a rapid pace.

Colleen Berndt

Colleen Berndt

“While the Wayfair decision did not directly impact income-tax nexus, the removal of a physical presence requirement for sales-tax nexus has definitely encouraged more states to enact a sales threshold as an indicator for income-tax nexus.”

The pandemic also resulted in millions of people across the world to become remote workers, creating another major shift in how modern-day business is conducted. Remote working has become the ‘new normal,’ almost overnight.

 

The Wayfair case – a major shift in state taxation

On June 21, 2018, the United States Supreme Court ruled in South Dakota v. Wayfair Inc., et al, that states can require an out-of-state seller to collect and remit sales tax on sales to in-state consumers even if the seller has no physical presence in the consumer’s state. 

In doing so, the court overruled 50 years of its own precedent. The decision allows states to define a sales threshold (either by dollar amount or the number of transactions) that will trigger a sales tax collection requirement.  

Since the Wayfair case, Massachusetts enacted legislation to change the state’s economic thresholds to $100,000 in sales with no transaction threshold. Most states now employ a dollar and/or a number of transactions threshold for sales tax collection and remittance. The frequency in which the tax must be remitted also varies greatly from state to state.

While the Wayfair decision did not directly impact income-tax nexus, the removal of a physical presence requirement for sales-tax nexus has definitely encouraged more states to enact a sales threshold as an indicator for income-tax nexus.

The increase in states employing an economic nexus standard, combined with the change in how business is transacted, has opened the door for a migration toward market-based sourcing. Market-based sourcing is the idea of taxes being imposed on where the service is consumed, rather than the location where the service was performed.

Under Massachusetts law, “doing business” includes every act, power, right, privilege, and immunity exercised or enjoyed in the Commonwealth, as an incident or by virtue of the powers and privileges acquired by the nature of such organizations, as well as, the buying, selling or procuring of services or property. In addition, Massachusetts will presume that a business’s corporation’s virtual and economic contacts subject the corporation to the tax if the volume of the corporation’s Massachusetts sales for the taxable year exceeds five hundred thousand dollars. Again, each state has its own unique set of rules to determine nexus.

 

Remote employees’ impact on nexus

Generally speaking, a remote employee will create nexus for the employer for tax purposes. Many states provided relief for pandemic-related circumstances, but most of those provisions have since expired. Nexus created by remote-working employees can create significant tax liabilities in new jurisdictions, especially for income tax purposes where the company has significant receipts from the state and the state apportions using a single sales factor formula, as many do. Massachusetts still utilizes a three-factor formula (sales, payroll and property) for most businesses. Most states have transitioned to sales as a single factor to determine apportionment.

 

The impact on recordkeeping

In order to ensure state tax compliance, businesses must keep records that perhaps were not required in the past. Thankfully, most businesses have a computerized accounting system, however, it may require more detailed information then previously needed to determine filing requirements.

For instance, the number of transactions by state may not have been a standard reporting item in the past. Another consideration is that the invoicing state may not necessarily be the state where the product is being consumed. If that is true, then the shipping records must become integrated into the accounting records to provide accurate sales-by-state reports. Given the digital footprint left by any type of transaction, states are aggressively pursuing businesses looking for some type of economic presence requiring the business to register and pay various tax types.

Also, employers must keep track of employees who work remotely by state. This can be especially challenging for hybrid employees who may reside in a different state than which the employer is located. The record-keeping requirements and then complying with all state filings (employment, sales, income, gross receipts, and franchise taxes) can be complex, costly, and overwhelming for small businesses.

Not only can it be very complicated and costly to ensure that a business is complying with all state filing requirements, the rules are complex and subjective in nature. This is why it is always best to consult with your tax advisor.

 

Colleen Berndt, CPA is tax manager with Lapier, Dillon & Associates PC; (413) 732-0200.

Accounting and Tax Planning

It’s Always Important to Know the Rules of the Road

By Garrett Kelly, CPA

 

Garrett Kelly

Garrett Kelly

‘Can I deduct vehicle expenses on my tax return?’

This is one of the most frequent and open-ended questions a CPA will get. As a CPA, if you have been in the game for any period of time, you probably know that the answer is: “it depends.”

Here are some other commonly asked questions questions and scenarios regarding automobile deductions — and some answers.

 

‘I have a personal vehicle that I use in my business. Can I take an automobile deduction?’

Yes, if the vehicle is used in the business for business purposes, you are allowed a vehicle deduction. How you take the deduction, and receive the tax benefit, depends.

This is where a CPA can really add value. Maybe it should be a 100% write-off of the cost of the vehicle in the first year. However, many times the tax deduction comes in the form of a lease agreement, auto reimbursement from the company, or business mileage deduction.

 

“I bought a vehicle in my business that is used 100% for business purposes. How much can I deduct and/or depreciate?”

Weight and use of the vehicle matters. You can deduct the full cost of the vehicle. However, it is either 100% deductible in the first year, or it is deducted over multiple years. The answer depends on the weight and use of the vehicle.

An SUV or truck whose gross vehicle weight (GVW) is more than 6,000 pounds, or a special-use vehicle, can be 100% deducted in the year it is placed in service in the business. This is achieved through 100% bonus depreciation. A car, whose GVW is less than 6,000 pounds, is usually limited on how much can be deducted in the first year, resulting in the vehicle being depreciated/expensed over multiple years.

If your business owns a fleet, five or more vehicles that are used 100% in the business, you are able to fully deduct the purchased vehicle without consideration of the vehicle’s weight. This can be done through Sec. 179 expensing or 100% bonus depreciation.

This is just the tip of the iceberg, but it highlights the differences based on weight and use.

 

‘Should I deduct actual vehicle expenses or mileage?’

We typically lead with this follow up question: “is the vehicle expensive and/or do you drive a ton of business miles each year?” That’s not a very technical response but it gets the conversation started.

For example, in 2021 Mike purchases a $65,000 vehicle weighing more than 6,000 pounds that is used 100% for business purposes. Mike drove 30,000 business miles out of 30,000 total miles in 2021 and expects similar mileage in future years. He expects around $3,000 of vehicle expenses each year. He plans to utilize this vehicle in the business for another five years. We would recommend using actual-expense method in this situation.

A $65,000 deduction in the first year is about four times what the business mileage deduction would be in 2021 (see example below). It would take at least four years for Mike to achieve the same amount in tax write-offs. Not to mention the annual maintenance costs that are deductible each year under the actual expense method.

However, if this vehicle only cost $25,000, we would recommend deducting mileage. Yes, the actual method may achieve an additional $7,450 deduction in year one, but then Mike is limited to just deducting actual expenses in future years (around $3,000 a year). Mike is looking at around a $17,550 mileage deduction every year for the next 5 years, a total of $87,750 in write-offs, compared to a total $37,000 in write-offs with the actual expense method.

Now, all that being said, the IRS requires you to choose a vehicle-deduction method in the first year the vehicle is placed in service. If you choose to deduct actual expenses in the first year, you are stuck with this method for the life of that vehicle. If you choose mileage deduction the first year, you are able to switch to actual expense in later years.

 

‘What is the 2022 business mileage rate deduction?’

58.5 cents per business mile; 18 cents per mile for personal medical, military, and moving expenses; and 14 cents per mile for charitable driving.

 

‘I would like to start tracking and deducting my business mileage. What do you recommend?’

A logbook you keep in your vehicle is a classic method. If you have a smart phone, we recommend the app, TripLog. If you use QBO, then you have access to a free mileage tracker that you can access through your smartphone (see links below for details).

https://quickbooks.intuit.com/accounting/mileage/#mileage-app

TripLog: Automatic Mileage Tracker App

 

The IRS requires certain information when tracking mileage. Be sure you are recording the following:

• Beginning and ending destination;

• Business purpose of trip;

• Miles driven;

• Dates of trip;

• Odometer reading at the beginning and end of each tax year.

 

Hopefully this provides some insight into some of the more common questions on this often-confusing matter. Reach out to your tax advisor for more detailed information or individualized tax planning. Vehicle deductions are some of the largest tax deductions a business owner gets, and you want to be sure you are maximizing this tax write-off.

 

Garrett Kelly, CPA, Tax Manager, specializes in tax planning and compliance for residential and commercial real estate, pass-through entities, and family groups.

Daily News

GREENFIELD — Anthony Worden, president & CEO of Greenfield Cooperative Bank and its parent company, Greenfield Bancorp, MHC announced today the operating results of the bank’s latest fiscal year as announced at the 117th annual meeting of the bank on June 21. Worden reported that FY 2022, which ended March 31, was very successful and the assets of the bank grew by $41.4 million (5%) over the prior year.

Other results include:

  • In FY 2022, GCB originated more than $166 million in loans of all types, including $61.3 million in residential mortgages, $92.0 million in commercial loans,

$45.6 million in municipal lending, $9.2 million in home equity loans and lines, and

$1.2 million in MassSave® ‘’zero-interest” energy loans.

  • GCB had an increase of $50.5 million in deposits (7.4%) over the past year;
  • The pre-tax operating income for Greenfield Cooperative Bank was $4.416 million for the year ended March 31, 2022 and the net income after taxes was $3.454 million;
  • GCB’s Tier 1 Capital to average assets is 10.5%. The bank is considered “well capitalized” by all regulatory definitions.
  • As a result of these solid earnings, the bank and its employees were able to contribute more than $180,000 to 200 community groups and charities throughout both Hampshire and Franklin County during the past fiscal year.
Daily News

HOLYOKE — Today, American International College (AIC) will sign an articulation agreement with Holyoke  Community College (HCC), establishing an academic relationship between the community college and the four-year institution.

The agreement between AIC and HCC allows academic programs that enhance the transition of HCC graduates, and promotes a smooth transfer to AIC, offering time and cost savings for students by recognizing the coursework pursued at the community college and demonstrates the ongoing commitment by ensuring that educational pathways are created for all those who wish to consider a degree in higher education.

At AIC, the program is referred to as Direct Connect. Direct Connect students can earn up to $18,000 in financial gift aid, not loans, before being evaluated for additional need-based aid and allows students to study and major in their area of interest while attending their community college.

Daily News

SPRINGFIELD — The law firm of Pellegrini, Seeley, Ryan and Blakesley made a financial contribution and donated staff man hours to help with the construction of a new home in Holyoke by the Greater Springfield Habitat for Humanity.

“As a firm, we are committed each day to help make the lives for residents of our state better,” said Charlie Casartello, the firm’s managing partner.  “To be able to literally construct a building to help a family in need is something very special indeed.”

Michael Cardaropoli, PSRB attorney and vice president of the Habitat for Humanity board of directors, agreed. “This is the second build project the firm has been involved with for Habitat for Humanity. We are always happy to roll up our sleeves and dig into another project for this amazing organization,” “Making a financial contribution is critical, but having the firm help with sweat equity is a labor of love for our whole team.

Daily News

HOLYOKE — Pare Corporation, a multi-disciplinary engineering firm, recently staged a well-attended grand opening for its facility in Holyoke, its third office in the Northeast.

“The Pioneer Valley is very community-focused and I appreciate the warm welcome the leaders of the Holyoke community have given us,” said Pare Vice President David Loring. “Because Holyoke is a hub point to the region, it is a perfect location for our new office. We look forward to meeting additional members of the community now that the office is open.”

As part of the ceremony, a proclamation was presented by the office of Senator John Velis, who grew up in Holyoke and maintains strong ties to the region.

Established in 1970, Pare Corporation has more than 130 staff serving the eastern United States. In addition to Holyoke, Pare has offices in Rhode Island and Foxboro, Mass. Pare has experience designing public and private facilities and the infrastructure that supports them. Clients and markets include state transportation departments, water and wastewater authorities, K-12 and higher education facilities, biotechnology and life science companies, and dams and marine facilities ranging to a wide variety of municipal, industrial, institutional, and commercial developments.

 

Construction Cover Story

History in the Remaking

Dave Fontaine Jr.

Dave Fontaine Jr.

Crews working on the $64 million initiative to transform the former Court Square Hotel in downtown Springfield into market-rate housing say the project takes them back in time. Actually, it takes them to several different periods of time — from the property’s days as prominent hotel to more recent days, when it hosted a popular tavern and several other businesses. While doing this time-traveling, these same crews are living in the present and confronting a number of challenges as they usher in the next chapter in this property’s intriguing history.

Dave Fontaine Jr. calls it a “cool memento.” Actually, it’s turned out to be more than that.

He was referring to a bid package submitted by his firm, Fontaine Bros. Inc., for redevelopment of the former Court Square Hotel in the heart of downtown Springfield. The date on the three-ring binder, crammed with interior and exterior photographs and other materials, is 2000.

And that wasn’t the first — or only — time the company had submitted a bid on a project to transform the property, now vacant for more than 25 years, for a different use — endeavors that never saw the light of day for one reason for another.

There have been so many in fact, that Fontaine, vice president of the company started by his great-grandfather and his brother, had some humorous material for use when he was asked to say a few words at one of the many ceremonies to mark milestones for the project that actually made it off the drawing board — a $64 million initiative to convert the property into 71 units of market-rate housing.

“I joked that I believe I’m the third generation of Fontaines to bid on the project,” he told BusinessWest, adding that both his father, Dave Sr., and grandfather, Lester, were involved with similar proposals. “We’ve been pricing it over decades, with at least a dozen iterations and many different planned uses.”

More than a quarter century after the first such bid, Fontaine is finally at work in Court Square, with one of its banners hanging on the front of the property. It’s an intriguing project, said Fontaine, one of many the company has handled that falls in the broad category of historical restoration. Others include the transformation of Classical High School into condominiums, Berkshire Hall at the Berkshire School in Sheffield, the public libraries in Holyoke and Shrewsbury, and even the conversion of 95 State St., visible out the windows of the Court Square property, into the home of MGM’s headquarters in Springfield.

Work at Court Square began early this year, he said, noting that the first phase involved weatherizing the property and making it structurally sound, significant steps for a building that was, in his words, in “terrible shape” when crews arrived and set up shop.

One of the original staircases at the Court Square Hotel.

One of the original staircases at the Court Square Hotel.

Actually it was in terrible shape in 2000, as photos in that bid package reveal, he said, adding that conditions only worsened over the past two decades as the elements took their toll on the structure.

“It had been vacant for 20 or 30 years,” he explained. “When we got there, the envelope needed work — and there are still areas where water gets into the building when the weather is poor — and historically there has been no heat in the building in the winter. The building was really on its last legs.”

Repairing and renovating what Mother Nature has damaged is just one of many challenges on this project, said Fontaine, noting that, like all construction projects undertaken at this time, this one has had to contend with everything from supply-chain issues to often dramatic increases in the prices of materials and labor.

“I joked that I believe I’m the third generation of Fontaines to bid on the project. We’ve been pricing it over decades, with at least a dozen iterations and many different planned uses.”

So much so that the Springfield City Council approved an 11th-hour request for $6.5 million in emergency funding to handle cost overruns for the project which came to fruition through a public-private partnership that includes a number of players, from the state, to Wynn Development and Opal Development, to MGM Springfield.

Another challenge is implied in that phrase ‘historical renovation.’ Indeed, the property, which dates to the 1890s, is on several lists of historic properties, said Karl Beaumier, on-site superintendent for the project, adding that, in many respects, crews from Fontaine are dismantling what was in place in the old hotel rooms and other spaces, storing those pieces, and putting them back after mechanicals, equipment, and appliances are installed and finishing work is completed. Everything that goes into the renovated structure, including new windows (600 of them) must be reviewed by the National Park Service.

“We salvaged a tremendous amount of the wainscoting on the corridors — some of it was left here, some of it came off and it’s going back on,” said Beaumier. “All of the doors were salvaged, the door frames, the door cases, the window cases on all the exterior windows, the baseboard, the chair rail, the crown molding — all of that stuff got saved; there are 10 40-foot conex boxes (shipping containers) completely full of salvaged woodwork that has to go back in the building.

“It’s been carefully removed, catalogued, and stored,” he went on. “It will all go back as part of the historical renovation.”

For this issue and its focus on construction, BusinessWest took a hard-hat tour of the property, and talked with Fontaine and Beaumier about the massive undertaking and the steps still to come.

 

Past Due

As they started their tour on the ground floor of the property, most recently home to several storefronts and eventually to be the site of a restaurant, Beaumier and Fontaine said that for the on-site crews, going to work each day also means going back in time.

Or to several different times, to be more precise.

view out one of the windows on the sixth floor

This view out one of the windows on the sixth floor explains why there has always been interest in converting the property for residential use.

Indeed, on the ground floor, the areas housing the storefronts bear evidence of their former uses, especially the space that was home to the tavern known as the Bar Association, a name chosen to reference the many clients from the legal community, many with offices within a block or so from the courthouse just south of the Court Square property.

“It was like things were stuck in time from the late ’80s,” said Fontaine, noting such items as the stained-glass window in the Bar Association and a door that still had the ‘R’ from owner Tony Ravossa’s name. “It’s cool seeing the old storefronts.”

From the ground floor, Beaumier took BusinessWest to the basement, where collected water provided evidence of still-ongoing work to shore up the property, and then to the second floor, where the next use of the property is starting to come into focus.

There, and on the remaining floors, long rows of what used to be hotel rooms —most all of them with doors to the rooms on either side — have been essentially gutted, with the masonry walls that divided them (see photo, page 30) taken down and the groundwork laid for what will become one- and two-bedroom apartments. In one hallway, rows of shower units were waiting for eventual installation.

While the property will have a completely different use than it did a century ago, it will look, in almost all respects, as it did back then, Beaumier explained.

“When we’re done, and we look down this corridor, it’s supposed to look just like it did in 1900,” he told BusinessWest as he gestured down the narrow hallway of the wing of the property that runs north-south toward State Street. “All these doors that went into the individual hotel rooms … we’ve opened up the spaces, so there will probably be two dummy doors for each unit; the doors that we took off have to get pinned back in the wall so that when you look down this corridor, it looks the same as it did historically; every third door will actually open into a unit, the rest will be dummy doors.”

Elaborating, he said that the actual walls to the units were pushed back a foot from where they stood originally, because the original corridor is too narrow for a wheel chair to turn in, an example of how some adjustments have to be made to enable a century-old building to comply with modern building codes and state and federal regulations.

The tour then provided more glimpses into the past as it went to and then down one of the original staircases to what was the lobby area of the former hotel, complete with the remains of a revolving door, marble-covered walls, and a ceiling, now in an advanced state of decay, that will be restored.

“Right now, we’re getting the building structurally back to where it needs to be so we can do the mechanicals and other systems,” said Fontaine adding that the initial phases of this project have involved demolition, structural work, and salvaging a number of features. When these have been completed, crews will move onto installation of those mechanical systems, replacing hundreds of windows, building out the individual apartments, and putting the salvaged items back in.

When the tour reached the sixth floor, Beaumier pointed out one of the north-facing windows to dramatic views of Court Square (see photo, page 26), looks that help explain why there has always been interest in redeveloping the property for housing, and why there has been a high level of interest in this project.

As they walked and pointed out specific areas of note in the sprawling property, Fontaine and Beaumier talked about everything from the significance of the project to Springfield and its central business district to the many challenges involved with undertaking a project like this at this time of soaring prices, supply-chain issues, and a workforce crisis that has affected all sectors of the economy including construction.

Photo by Joe Santa Maria, Kill the Ball Media

Work to convert the property into a mix of residential and retail spaces is expected to be completed in the early fall of 2023. Photo by Joe Santa Maria, Kill the Ball Media

Fontaine, whose family has developed or redeveloped many properties downtown, from the aforementioned State Street project to the expansion of what is now known as the MassMutual Center, to the creation of MarketPlace, said the Court Square is an important next step in the revitalization of that area.

“That downtown area means a lot to us, we’ve handled a lot of projects in that area,” he said. “I grew up in this area, we’ll stay in this area; I want my daughters to be able to stay around here and work and live here if they choose to, and I this is a big step toward making downtown attractive to working professionals and people who want to be downown.”

As for the many challenges that come with building at this time, Fontaine said there have been some adjustments to make.

That includes the emergency funding from the City Council, he said, adding that the amount allocated should cover the escalating cost of the project. But it also includes longer lead times for items and, in some cases, having to use different products or materials because the lead times are too long.

“As with every construction project going on right now, there have been a lot of items with long lead times — significantly longer than normal,” he explained. “We’ve been working through that with the designers to use some products that do what we need them to do, but also get here within the lead times. With the mechanical systems, one of the manufacturers that was specified for the unit heaters had a 52-week lead time; we found something we could get in the time frame in which we needed them.”

 

Finishing Work

The elaborate project is expected to be completed in the early fall of 2023, said Fontaine.

There will certainly be an elaborate ribbon-cutting ceremony at that time, one that will close the book on the long, often-frustrating efforts to create a new life for the historic property, and usher in the next chapter.

Fontaine can also close the book — figuratively but also quite literally — on more than 25 years of bidding on projects to transform the property.

That binder from 2000 is, as Fontaine said, a cool memento, but it’s also a symbol of this property and how long its fate has been a critical issue in Springfield.

 

George O’Brien can be reached at [email protected]

Features Special Coverage

Uplifting Spirits

For most in this region, the war in Ukraine is something to read about or see on the nightly news. For Paul Kozub, founder and president of V-One Vodka, who operates a distillery in Poland just a few hours from the border with Ukraine, the war hits much closer to home — figuratively, if not literally. He made a trip to Poland and then the border in March, and he’ll be going back in July, bringing cash for refugees and other types of support.

Paul Kozub says he’d like to forget some of the things he saw and heard while on his trip to Poland and its border with Ukraine in March, just days after the fighting began there. After all, he was seeing people in extreme distress — women and children, mostly, who were leaving their home country, sometimes with just on their clothes on their back, not knowing if they would ever be returning.

But these words and images, and there are many of them, are burned into his memory, he said, and they make him even more committed to doing what he can to help refugees who have made their way to Poland, where Kozub, founder and owner of V-One Vodka, owns a distillery.

“What I saw and what I experienced was mind-blowing, especially in 2022,” he recalled, adding that he wound up making three trips to the border in March, with each visit lasting seven or eight hours. “We saw the buses on the highway filled with women and children — martial law was declared in Ukraine, so no men under the age of 60 were allowed to leave the country. So you just saw women and children leaving, fleeing in buses on the highway — bus after bus after bus full of people.

“On the border, there were tents set up for food and a kind of transition spot,” he went on. “But you’d see women 70-or 80-years-old crossing with bags, and young women with strollers and children just walking over the border.”

Kozub told BusinessWest that he felt compelled to travel to Poland in March. He wanted to visit the distillery, located in the town of Lublin, something he’s done every few months over the past several years, although far less frequently since 2020 due to COVID, but also to support refugees if he could.

He left with several thousand dollars in cash, most of it in $100 bills, that he distributed to several different individuals and families knowing that the way exchange rates were moving, U.S. currency would buy much more than the Polish dollar. He made a few trips to the border, which is about a 90-minute drive from the distillery, and in doing helped bring the war to this country through a few interviews with a Boston television station that picked up his story and talked with him from his hotel room and at the border.

“I never thought I’d be a war correspondent, but there I was talking about what I saw and what I experienced,” he said. “To me there’s no more clear example of good versus evil, a country that’s invaded for no clear reason.”

Today, Kozub is planning a return visit to Poland and his distillery with his family — his wife and four children. He’s not sure if he will make it to the border, but does plan to visit some refugee centers and try to reconnect with several of the people he met three months ago.

He plans to visit the Help the Ukranian Children Foundation in Zyrzyn, Poland, which he is supporting through a special label for his vodka, one with the blue and yellow of the Ukranian flag; $2 from the sale of each bottle going to support refugees.

Paul Kozub displays one of the new-edition bottles bearing the color of the Ukranian flag

Paul Kozub displays one of the new-edition bottles bearing the color of the Ukranian flag. He is donating $2 from each bottle to help refugees.

For this issue, BusinessWest talked with Kozub about how the war in Ukraine — and the plight of those who have fled that country for Poland — have become personal for him, and how he continues to find ways to not only support those individuals and families, but also shed needed light on their situation.

 

Proof Positive

As noted earlier, Kozub has many indelible memories from his March visit, one that brought the war in Ukraine and its profound impact on its people, home in ways that can’t be appreciated by simply tuning into CNN.

He used the word ‘surreal’ more than a few times to describe what he saw, especially during those visits to the border.
“Poland was normal for the most part — there were a lot of Ukrainain flags,” he recalled, “But as we were driving toward the border, and as we got to within 10 miles of the border, there was nobody … no cars going in our direction; instead, we saw all the buses going in the other direction.

“What I saw and what I experienced was mind-blowing, especially in 2022.”

“That was the first time we got a little anxious,” he went on. “Once we got to the border, we befriended a few Polish police men and women who started telling us the stories they were hearing.”

One memory stands out for him. It involves giving a ride to a young girl and her parents to the city in Poland where he was staying.

“We didn’t notice until they got out that they had nothing,” he recalled. “No bags, no nothing, just the clothes on their backs. The way the man was dressed — he had a nice watch, nice clothes on, nice shoes — you could see that they just left so quickly they didn’t have time to pack a bag. Seeing stuff that like really hit home.

Kozub said he left for Poland with the expectation that he would bring a few thousand dollars to the border, maybe visit once and try to help people as they were coming into Poland during the first days of the war. But those expectations were altered by what he encountered, and also by contributions sent to him in advance of his trip, including $4,000 from his commercial lender, PeoplesBank — the most that can be sent via VENMO.

Paul Kozub, seen here with police officers at the border

Paul Kozub, seen here with police officers at the border, will be returning to Poland next month.

“That contribution really helped — while I was there, I was able to buy so much more,” he recalled, noting that he was able to buy a washer and dryer for an apartment building now housing 80 women and children, and also bring more needed food and water to the border.

He recalled one instance where he tried to help a woman with four young children.

“All these people didn’t want to accept money from me at first,” he recalled. “But I said ‘you have to — that’s why I traveled all this way.’

“That was back when there were tens of thousands of people coming over every day — that’s when most of the need was going on,” he recalled, adding that the sights from those days remain with him even though the scene has changed, as have the needs of the refugees that have made their way to Poland.

While what he saw was disturbing on many levels, so too was what he heard from some of those he encountered, he said, noting that he has come to understand the Polish language, which is very similar to what is spoken in Ukraine.

“As we were driving toward the border, and as we got to within 10 miles of the border, there was nobody … no cars going in our direction; instead, we saw all the buses going in the other direction.”

“We could understand most of what they were saying,” he noted. “We would see the cars of people driving into Poland, and they would have pieces of paper in the window with ‘ditya,’ which is ‘child’ in Russian written on them. We were hearing stories that the Russians were shooting at them; they were bombing these lines of cars as they were leaving.

“The stories of atrocities that we’re now hearing every day … I was hearing them in the beginning,” he went on. “It is so unbelievable that this is going on today; it’s very heartbreaking, and you just don’t want to believe that it’s true.”

While there are still some people leaving Ukraine for Poland, much of the activity is now moving in the other direction, with many returning to the country they fled. Still there are millions still in Poland forging a new life for themselves there, a challenge made simpler by the Polish government’s decision to change its law and allow people from the Ukraine (which is not part of the European Union) to come into that country and work and start businesses.

“In some of the major cities, like Warsaw and Krakow, they’ve seen a 30% to 40% increase in population,” said Kozub, adding that refugees are finding housing in the homes of Polish residents, in churches, camps, and other sites.

Paul Kozub says his trip to the border in March was surreal

Paul Kozub says his trip to the border in March was surreal in many respects and included work as a “war correspondent.”

As for his planned July trip back to Poland, Kozub said he plans to reconnect with some of the individuals and families he met at the start of this conflict, including a young man who renovated a 20-unit apartment building in Zyrzyn that is now home to 80 women and children.

“We’re continuing to raise money for them, so I’ll bring some money for that charity,” he said, adding that he also plans to visit — and bring some money to — an orphanage located near the distillery, one that he has been supporting for several years now, which is now housing orphans from Ukraine.

To further assist refugees, and, specifically, Ukranian Children Foundation, Kozub has created a special label for his original V-One vodka, a project that was fast-tracked, with the label being finalized in just a few months, rather than the full year that it normally takes.

It was undertaken as Kozub was introducing another new flavor — Double Espresso — to his growing portfolio, one that is ever-changing and expanding to keep pace in the ultra-competitive vodka market.

The March trip to the distillery was undertaken to finalize the recipe for that new flavor, he said, adding that the overall process has been slowed by supply-chain issues and huge increases in shipping costs and other expenses — challenges that are making it much more difficult to do business in this industry.

Despite these challenges, Kozub wanted to introduce his new label, a project that was conceived just before his March visit, with the expectation that there would be long-term needs among the refugees.

“It takes about a year to get things done, between the approvals and the printing time, and other issues, but we were able to get it done in three weeks,” he said, adding that the son of one of his employees at the distillery drove 10 hours each way to pick up the labels, which were affixed to 3,000 bottles overnight, in time to get on a container ship.

The special edition bottles should arrive by mid-summer, he said, and he expects them to be sold out by August.

 

His Best Shot

Like most everyone taking in what’s happening in Ukraine — from a few feet from the border or 4,500 miles away — Kozub has no idea when this conflict will end or how it will end.

What he does know is that there are many people still in need. They are an ocean and then a continent away from V-One’s headquarters in Hadley, but only 100 miles or so from where his vodka is made.

Since setting up shop in Poland, he has been active in that ‘community’ and a source of support for orphans and others in need. The landscape there has changed dramatically over the past three months, and Kozub has responded accordingly. As he said, it’s personal for him.

 

George O’Brien can be reached at [email protected]

Accounting and Tax Planning Special Coverage

Strategic Decisions Now Can Benefit You in the Long Run

It’s late June — time for, among things, thinking about your taxes. Actually, it’s time to do more than think about them. What’s needed is a hard look at matters ranging from business classification to expiring provisions to charitable donations, and then formulating strategies that will benefit you and your business for the long term.

By Kristina Drzal Houghton, CPA

Accountants spend a lot of time talking to clients during tax season about the importance of tax planning. Now is that crucial time. As we approach the halfway point of 2022, tax planning discussions should be underway for many businesses and individual taxpayers

Starting early is important but plans should consider that tax rules might change at the end of the year and businesses and individuals simply can’t afford to not prepare for those changes. Additionally, some COVID-19 relief programs are set to expire this year, therefore businesses should be ready to document appropriately and/or take advantage of potential savings. With so much probable change, it’s important to carefully consider your options and make strategic decisions that could benefit you in the long run.

As a small business owner, tax planning should be a key part of your overall financial strategy. By taking advantage of tax breaks and deductions, you can minimize your tax liability and keep more money in your pocket. Here are nine strategies you should consider:

 

Review your tax liability for the current year

EventTake a look at your tax situation for the current year and estimate how much tax you will owe. This will help you determine if you need to make any changes to your withholdings or estimated tax payments.Event

Consider a tax status changeEventYour entity type not only impacts how you are protected under the law but it also affects how you are taxed. If you’ve outgrown your current business structure, or if you previously set up a structure that wasn’t the best fit for your business, you can elect to change your structure. Each entity type has its own benefits and drawbacks, so it is important to make sure you have a full picture before committing to your decision.

 

Amortization of research and experimental (R&E) expenditures

Due to law changes, companies are no longer allowed to fully deduct their R&E expenses. Instead, these expenses are amortized over a period, based on where their services are provided. Classification of expenses as R&E should be renewed.Event

 

Review expired provisions

Some of the tax relief provisions in 2021 the American Rescue Plan Act (ARPA) were carried over into 2022 by the Build Back Better Act. Principal among them are ARPA’s increases and expansion of the child tax credit, including its monthly advance payments, which have now ended as of the December 2021 payment. The Build Back Better Act was signed into law this past March 11 and included a renewal of that provision for 2022. Beyond those expiring provisions, a number of pre-ARPA “extender” items lapsed at the end of 2021, such as the treatment of premiums for certain qualified mortgage insurance as qualified residence interest and multiple energy and fuel credits.Event

 

Review the new limit on state and local tax deductions

For individual taxpayers, one of the biggest potential changes being lobbied is the possible restoration of the deduction for state and local taxes (SALT). If this proposal becomes law, it could have a major impact on your tax bill. As such, it’s important to think about how you would adjust your tax planning if the SALT deduction is restored or remains limited. Additionally, there are a number of other proposed changes to the tax code that could impact individuals, so it’s important to stay up-to-date on the latest developments and plan accordingly.Event

 

Consider the Qualified Business Income (QBI) Deduction

The qualified business income (QBI) deduction, which provides pass-through business owners a deduction worth up to 20% of their share of the business’s qualified income. However, this deduction is subject to a number of rules and limitations. For example, owners of specified service trades or businesses (SSTBs) are not eligible for the deduction if their income is too high. SSTBs generally include any service-based business, such as a law firm or medical practice, where the business depends on its employees’ or owners’ reputation or skill. If a business is eligible for a QBI deduction, owners should carefully weigh salary vs. flow through income.Event

 

Budget for larger charitable donations

Finally, if you’re thinking of making a charitable donation, recently you may not have benefited as much from the deduction for your donation as you have in the past. Since the TCJA nearly doubled the standard deduction started effective 2018 and capped the SALT deduction, fewer people itemize their deductions on their tax return.

As a result, the tax benefits of charitable donations have been limited to those who itemize their deductions. If the SALT cap is increased or eliminated, the deduction for charitable contributions could be more beneficial. If you are considering more significant contributions, gifting appreciated stuck to qualified charities offers great benefits. You will get a tax deduction for the fair market value and not be taxed on the unrealized gain. Event

 

Remember, meals and entertainment are still 100% deductible.

For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. (The limit is usually 50% of the cost.)

 

Review your accounting methods and records

It’s a great time to look at the books, and make a plan to adjust anything that should be changed while also planning for the future. Many times, unexpected changes come up that can impact your business and individual taxes that you may not have even considered. For example, will you have any major life changes, such as getting married or having a baby? Buying a house? Leasing a business vehicle? Hiring more employees? Relocating your business? Spending more than usual on talent acquisition? Investing or accepting cryptocurrency? These changes can have a significant impact on your tax liability.

 

No matter what changes are ultimately enacted into law, the key to successful tax planning is staying informed and being proactive. By taking the time to understand the potential implications of proposed changes and making strategic decisions now, you can help ensure a smooth tax season for yourself and your business in 2022.

 

Kris Drzal Houghton is a partner at the Holyoke based accounting firm, Meyers Brothers Kalicka, P.C

Daily News

GREENFIELD — Greenfield Community College announced that Michelle Schutt will serve as the college’s 11th president, effective July 18.

Currently serving as the vice president of community and learner services at the College of Southern Idaho (CSI), the state’s first Hispanic serving institution, Schutt was chosen from a competitive pool of four highly qualified candidates.

“I am honored by the opportunity to serve Greenfield Community College as its next president and I look forward to ensuring that we meet the evolving needs of the students, employees, alumni and community members we serve,” Schutt said.

With more than 20 years of experience in higher education, Schutt has held leadership roles in all facets of education, including student affairs, academic services, and community learning. Schutt’s leadership throughout her career has produced measurable enrollment and retention results. Schutt oversaw an enrollment increase of 3% at the College of Southern Idaho (CSI), the state’s first Hispanic serving institution, during the COVID-19 pandemic in 2020- nationwide decreases due to the pandemic and an expected institutional decline was 15%.

Daily News

BOSTON — MassINC’s latest report, ‘Sizing Up Massachusetts’ Looming Skilled-Worker Shortage,’ projects the state’s working-age, college-educated labor force will decline by approximately 10% from current levels, creating a larger decrease than expected.

“There are simply no more college-educated workers to come by,” said Ben Forman, MassINC’s research director. “Each year we’ll have fewer than the previous, unless Massachusetts does a far better job helping students through higher education and building housing that they can afford.”

According to Forman, labor force participation rates for college-educated residents are already near historic highs and unemployment for this group hovers around 2%.

The study analyzed college-completion figures from the state’s Department of Elementary and Secondary Education (DESE) and population and migration data from the U.S. Census Bureau. The findings suggest that lower college completion rates among people of color, retiring baby boomers, more outmigration and lower immigration rates will simultaneously place downward pressure on the state’s skilled labor force.

“Demographers have long warned that the retirement of baby boomers would present a challenge for Massachusetts,” said Forman. “But they didn’t anticipate the degree to which inequality and high housing costs would compound the problem.”

State legislators are trying to increase investment in Early College high schools in this year’s budget. Last week, DESE presented an analysis demonstrating that these programs are dramatically increasing college enrollment and completion rates for low-income students and students of color.

 

Daily News

SPRINGFIELD — From Memorial Day until Labor Day, Freedom Credit Union is hosting a ‘100 Days of Summer Food Drive’ for its 100th anniversary.

Donations will be given to The Food Bank of Western Massachusetts. Freedom Credit Union is also accepting cash donations at all its branch locations.

“The Food Bank of Western Massachusetts has long been near and dear to our hearts for the essential services they provide to people in need throughout our region,” said Freedom Credit Union President Glenn Welch. “Last summer, we raised funds and non-perishable food items on their behalf during the months of June and July. This year, in celebration of our 100th anniversary, we want to make an even bigger impact.”

The drive is not exclusive to credit union members or employees. For each dollar received, the Food Bank is able to provide four meals. Freedom has locations in Springfield, Chicopee, Easthampton, Feeding Hills, Greenfield, Ludlow, Northampton, Turners Falls and West Springfield.

Daily News

SPRINGFIELD — Rocky’s Ace Hardware will host a ‘round-up’ fundraising campaign in 10 stores for Children’s Miracle Network (CMN) hospitals.

Customers can round up their totals to the next dollar between June 24 and July 4 at participating locations — the Island Pond Road and Liberty Street stores in Springfield; the Agawam, East Longmeadow, Westfield, Ludlow, Palmer and South Hadley stores in Western Mass., and the Vernon and Stamford, Conn. locations; 100% of the proceeds will go directly towards CMN hospitals.

Children’s hospitals rely on donations and community support, as Medicaid and insurance programs do not fully cover the cost of care. Since 1983, CMN hospitals have helped fill funding gaps by raising more than $7 billion.