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Similar to Commercial Buildings 179D Tax Deduction Up to $1.80 per SF
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Commercial Buildings 179D Tax Deduction Up to $1.80 per SF
- 1. John J. Schultz Energy Consultant RESNET/HERS Certified Rater Stevens Point, Wisconsin
- 2. Energy Policy Act of 2005 IRC Section 179D Commercial Buildings
- 3. 179D provides for a Tax Deduction of up to $1.80 per Square Foot
- 4. Not to Confuse Allows businesses to deduct the cost (limits apply) of certain types of property on their income taxes as an expense, rather than requiring the cost of the property to be capitalized and depreciated. If a business is unprofitable, and has no taxable income to use the deduction, that business can elect to use 50% Bonus Depreciation and carry-forward to a year when the business is profitable. Section 179 Deduction
- 5. 179D Buildings “placed in service” 1/1/2006 to 12/31/2016
- 6. 179D Buildings Non-Profits are ineligible (not paying federal income tax)
- 7. 179D Buildings Governmental & Public Units are eligible (tax benefit accrues to design- builder and/or designer)
- 8. 179D Tax Deduction reduces your taxable income
- 9. 179D Tax Deduction of $1.80/SF can be 1, 2 or 3 components
- 10. 179D Tax Deduction can be $.60/SF each for -HVAC & Hot Water -Interior Lighting -Building Envelope
- 11. 179D Tax Deduction Certification Requirements 1. Third-Party Engineer or Contractor 2. Energy Modeling Software 3. May Require an Inspection 4. Reports Prepared to IRS Guidelines
- 12. 179D Tax Deduction Energy Reduction Baselines 2005-2015 Buildings: ASHRAE 90.1 – 2001 2016 Buildings: ASHRAE 90.1 – 2007
- 13. 179D Tax Deduction How to take the Deduction 3-Year amended return or Form 3115 20-Year carry forward
- 14. 179D Tax Deduction Nothing is submitted with your tax return Keep the certification and calcs on-file, if audited
- 15. 179D Tax Deduction What We Need Building Plans HVAC & Lighting Schedules Building’s Primary Usage
- 16. 179D Tax Deduction Things to Know 1. Complimentary Analysis 2. Written Fee Proposal 3. Reduces your Basis 4. No fee if no deduction