Significant Tax Benefits In Year One
LED customers can benefit from a trifecta of significant tax deductions available for commercial buildings, prepared by CPAs and licensed engineers, and guaranteed by Lloyds.
179D Energy Efficiency Tax Deduction
A one-time accelerated depreciation is allowed for energy efficiency projects
Section 179D of the IRS Code allows accelerated depreciation for energy efficiency projects of up to $1.80 per SF; $0.60 for each of interior lighting, building envelope and HVAC in Year One of the installation.
A minimum energy cost reduction of 40% is required (50% for warehouses).
Abandonment Tax
Abandonment allows retired assets not ever segregated on the books to be expensed
Assets being discarded qualify for Abandonment if they are not segregated in the books, and are instead included within the value of a large asset, such as a “Building”, being depreciated over 27.5 or 39 years.
At disposal time, their remaining value can be determined and written off.
Cost Segregation Tax Benefit
Cost Segregation allows certain assets to be depreciated faster.
Cost Segregation re-classifies the depreciable lifetime of certain assets included within the value of a large asset, such as a “Building”, being depreciated over 27.5 or 39 years; to a depreciable lifetime of 5, 7, or 15 years.
Buildings can now be depreciated in the shortest amount of permissible time.
