Busting Common Misconceptions: §179D Only Applies to New Buildings

Busting Common Misconceptions: §179D Only Applies to New Buildings

Reality: Renovations are a Game-Changer Too! The truth is that §179D is not exclusive to new constructions; it extends its benefits to renovations as well. This misconception has left many property owners unaware of the potential benefits awaiting them when making energy-efficient upgrades to their existing commercial buildings. Under §179D, property owners can qualify for … Read more

The Ultimate Guide to the §179D Tax Deduction: Saving Money While Going Green

Building owners and designers of tax-exempt buildings who want to save money while being environmentally aware should look into §179D as a resource in this age of sustainability-focused business planning and growing environmental consciousness. Building owners should take advantage of this tax incentive to increase the company’s cash flow. On the other hand, Architects, engineers, … Read more

Busting Common Misconceptions: The Efficient Reality of §179D Site Inspections

In the realm of energy-efficient building projects, the Section §179D tax deduction is a hot topic. It offers deductions for energy-efficient improvements in commercial buildings. However, a prevalent misconception about the required site inspections for §179D qualification exists: they’re often viewed as intrusive and time-consuming for site personnel. Let’s demystify this and reveal the actual … Read more

Case Study 7 of 8: Qualifying as a designer of energy-efficient properties

Case Study 7 of 8: Qualifying as a designer of energy-efficient properties    While taxpayers often first think of HVAC and building envelope improvements when considering qualifying §179D energy and power cost savings, lighting improvements can also qualify. Of the eight factual case studies the IRS released in Memorandum AM 2018-005, the seventh scenario examines … Read more

What is the new Form 7205?

There’s an important paperwork change for filing the Section 179D Energy Efficient Commercial Building Deduction. On Jan. 11, 2023, the IRS published the new Form 7205 for taxpayers interested in claiming this deduction.    What is the new Form 7205?   The new form provides taxpayers with a new place to calculate, document, and claim … Read more

The benefit of “new phase” energy-efficient improvements to previously claimed 179D projects

The benefit of “new phase” energy-efficient improvements to previously claimed 179D projects   Until the passage of the Inflation Reduction Act of 2022, property owners had a lifetime max per building of $1.80/sf to pursue Section 179D tax deductions:    There’s an important new change that property owners should also know about. Prior to IRA … Read more

Integrate Section 179D into the Early Stages of Non-Profit Design

Integrate Section 179D into the Early Stages of Non-Profit Design    Like their commercial counterparts, non-profit building owners also pursue building and renovation projects. But when it comes to Section 179D deductions, they have more in common with governmental entities. As non-profits are non-tax paying entities, they cannot qualify for tax deductions. While their building … Read more

The Steps to Obtaining a Section 179D Allocation from the GSA

The Steps to Obtaining a Section 179D Allocation from the GSA   The General Services Administration (GSA) plays a crucial role in allocating Section 179D deductions for government building projects. Under the Energy Policy Act of 2005, commercial building owners and tenants can claim tax deductions for specific energy efficiency projects made to their properties. … Read more

Case Study 3 of 8: Qualifying as a designer of energy-efficient properties

Case Study 3 of 8: Qualifying as a designer of energy-efficient properties    Nearly two decades after IRC §179D was published as part of the Energy Policy Act of 2005, this deduction remains a top priority in building projects. With the enhancements that have occurred through the passage of the Inflation Reduction Act of 2022, … Read more

The Phasing Out of QIP Rules is Creating new Section 179D Lighting Opportunities

Though 2017’s Tax Cuts and Jobs Act (TCJA) is well in our rearview mirror, businesses (as well as individuals) benefited from its provisions. One of its primary targets was the corporate tax structure, with the intention of stimulating business investment and economic growth. Among the many provisions, the Act made substantial changes to the treatment … Read more

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