The §179D Energy Efficient Commercial Building Deduction is a Federal tax incentive designed to promote taxpayers to construct energy efficient buildings as well as encourage building owners to make improvements to existing structures that reduce energy and power costs. This incentive is often referred to as the EPAct Deduction after the Energy Policy Act of 2005, which created it, or as the §179D Deduction, which relates to the Internal Revenue Code section that codified it. As an added inducement, architects, engineers, contractors, and other designers may also be eligible for the incentive on public projects.
HOW IT WORKS
Commercial building owners can take a Federal tax deduction of up to $1.80 per square foot of the building’s floor area if they install property that reduces energy and power costs. These installations need to be a part of the building’s interior lighting systems, heating, cooling, ventilation, hot water systems or building envelope.
HOW WE HELP TENNESSEE TAXPAYERS
ICS Tax can perform the necessary energy modeling and site visits to calculate the amount of the additional §179D Deduction, coordinate with your tax preparer to claim the deduction, seek assignment of deduction from government agency if required for public projects and prepare and audit-ready deliverable package.