179D Energy Efficiency Tax Benefit
Section 179d of the irs code provides tax deductions of up to $1.80 per square foot as incentive to make buildings more energy efficient.
179D Year One Energy Efficiency Tax Deduction.
The Energy Policy Act’s Section 179D of the Internal Revenue Code permits the accelerated write-off of energy efficient projects for commercial buildings in Year One of their installation, with the remainder depreciated over the following four years; instead of the traditional 27.5 or 39 year depreciable lifetime.
Building owners and tenants who make expenditures to cause commercial buildings to be more energy efficient and designers of qualifying government buildings will be eligible for an immediate one-time depreciation deduction of up to $1.80 per square foot.
Deduct Up to $1.80 Per Square Foot.
A tax deduction of $1.80 per square foot of affected area is available in Year One; $0.60 for each of interior lighting, building envelope and HVAC. The tax deduction cannot exceed the cost of project; and any remaining value will be depreciated evenly in the four following years.
The energy savings must be calculated using IRS qualified computer software and meet certain energy savings targets; for interior lighting, a minimum annual energy cost reduction of 40% is required (50% for warehouses).
Deadline is December 31, 2016.
On December 18, 2015, the President signed the Tax Extender Bill, extending EPAct 179D for two years. One year retroactive (2015) and one year forward (2016). The energy saving system must be placed in service before December 31, 2016, which is when 179D expires.
Awaken Prepares the Entire File.
Awaken’s professional partner’s engineers and CPAs will provide an independent, third-party certification as required by the IRS, to take advantage of these significant tax benefits. They will perform an on-site visit, determine the tax deduction and prepare all the required IRS forms. PDF drawings of the affected area are typically required.
Protected by Lloyds.
Awaken, through its professional partner, has a Lloyds insurance policy that guarantees to fund any and all engineering, accounting and legal professional fees required to vigorously defend against any denial by the IRS of the 179D tax deduction.
