A new study published by a leading regional economic modeling and policy analysis firm published a report on of the economic effects of extending the §179D Energy Efficient Commercial Buildings Tax Deduction. The results are astounding. The analysis shows that in addition to advancing the goal of energy independence, the §179D Deduction is an engine of economic and employment growth. Specifically, the study finds that:

• Strengthening and extending the §179D Energy-Efficiency Commercial Buildings Deduction will create jobs and expand the nation’s economy. These benefits would be compounded by increasing the dollar value of the deduction in accordance with several Congressional and administration proposals.
• These enhancements to §179D would support up to 76,529 jobs annually and contribute annually almost $7.4 billion to national gross domestic product (“GDP”), as well as over $5.7 billion towards national personal income.
• Expanding the availability of the deduction to nonprofit organizations and tribal governments, while increasing the applicable energy efficiency standards, also provide clear positive impacts to the economy.

A background on this incentive as well as recent legislation to extend §179D beyond 2016 can be viewed in the ICS Tax Alert titled “Promising Future for the §179D Energy Efficient Commercial Building Deduction and the §45L Energy Efficient Home Credit”.

ICS Tax, LLC is a leader in providing energy modeling and certifications for the §179D Energy Efficient Commercial Buildings Tax Deduction. For more information on this valuable tax incentive or other related tax planning strategies, please contact an ICS Tax representative.

Author: Alexander Bagne, JD, CPA, MBA, CCSP. Contributing Authors:Mike Piper, LEED AP and Kevin Johnson, LEED AP

ABOUT ICS TAX, LLC

ICS Tax, LLC (ICS) is a consulting firm providing innovative tax planning strategies. ICS collaborates with taxpayers and their tax professionals to identify credits and incentives that reduce tax liabilities and increase profitability. ICS provides nationwide service through its Twin Cities headquarters as well as its offices located in Northeast Ohio, on the Pacific Coast, in the Tristate area, and the Dakotas.