The House of Representatives passed a sweeping Republican-backed bill that would eliminate the 30% residential solar tax credit (§25D of the U.S. Tax Code) by the end of 2025. The legislation, which also includes major tax, budget, and immigration reforms, faces an uncertain future as it heads to the Senate...

The “One, Big, Beautiful Bill" promises to provide one big deduction for R&D expenditures. Section 111002 aims to provide immediate relief for businesses engaged in research and development activities within the United States. This marks the most promising proposal to walk back the R&D expenditure amortization requirements since they went...

The §45L Tax Credit and EnergyStar are currently intertwined. Losing one jeopardizes the other, significantly impacting our ability to build energy-efficient homes. The §45L credit is crucial for our industry's financial viability and environmental progress. Losing EnergyStar would severely hinder our ability to build sustainable housing. The §45L Tax Credit is our country’s last...

The IRS has updated its Practice Unit on the §179D Energy Efficient Commercial Buildings Deduction. While not official guidance, these units provide valuable insights into IRS audit and enforcement approaches. The latest §179D updates introduce new eligibility rules, compliance requirements, and higher deduction limits. Given the complexity of these provisions...

When converting personal property to investment use, taxpayers must maintain clear documentation of both the original cost and the fair market value at the time of conversion. This documentation is crucial for supporting depreciation deductions and avoiding IRS challenges. In Sherman Derell Smith v. Commissioner, T.C. Memo. 2025-24 (March 24...

President Donald Trump signaled a strong commitment to reinstating full bonus depreciation under the Tax Cuts and Jobs Act (TCJA), a provision currently set to phase out by the end of 2026. The reinstatement, according to Trump, would be made retroactively to January 20, 2025. If implemented, this move would...

A partial disposition occurs when a taxpayer disposes of a portion of an asset rather than the entire asset. This can happen during renovations or improvements when parts of the building are replaced or retired. For example, a taxpayer upgrading to energy-efficient LED lighting, installing a new HVAC system, replacing...

ICS Tax and ICS Inspectors are exhibiting at the International Builders' Show (IBS) in Las Vegas from February 25–27, 2025. Connect with our team and learn more about how we can support your business with our unique tax planning and home inspection solutions. Our team of HERS raters, engineers, and...

Alex Bagne, President of ICS, recently hosted a webinar on accounting methods in November 2024. The webinar drew an audience of over 1,000 participants, and we are now contributing our expertise by publishing answers to your accounting methods Accounting methods are the rules used to report income and expenses...

In a 2024 case, United States of America v. Oehler et al, the tax court denied the Energy Efficient Commercial Building Deduction under IRC §179D to a lighting contractor for work they performed upon public schools since it failed to meet the definition of a “designer”...

ICS Tax, LLC is thrilled to announce Tiffany Grimmer as its newest partner, who will serve as the Chief Operating Officer. She will continue to reside at its Savage, Minnesota headquarters. Tiffany has been with ICS for eight years, progressing in her career as the operations hub of the organization...

Join our exclusive webinar where Laura Steinbrink from Emerald Built Environments hosts an insightful discussion with Alex Bagne, Jason Puffenbarger, and Noe Montalvo from ICS Tax. Topics include: Federal tax incentives (179D, 45L, Cost Segregation, renewable energy tax credit), utility rebates, opportunity zones. How to layer incentives together to maximize...

The IRS recently announced several notable changes to the process of claiming the R&D Tax Credit, announcing welcome reductions to requirements for filing amended R&D Credit claims and reduced requirements for the proposed Form 6765. In response to feedback, the IRS has revised the draft Form 6765 and has also waived...

The IRS released final regulations and related guidance regarding bonus credits and deductions for taxpayers that satisfy prevailing wage and apprenticeship (PWA) requirements. The regulations apply to certain “green” energy tax provisions, such as the §179D Energy Efficient Commercial Building Deduction and the §45L Energy Efficient Home Credit, as well...

The IRS recently released Announcement 2024-24, notifying taxpayers that Reference Standard 90.1-2022 is the applicable reference standard required under the §179D Energy Efficient Commercial Building Deduction for ‘Energy Efficient Commercial Building Property’ (EECBP) placed in service after December 31, 2028, and the construction of which did not begin by December...