In just a few weeks, companies will no longer be able to plan for qualified §179D offsets on future projects. However, there is – and will be – time to claim “catch up” on deductions under this strategy. Enacted under the EPAct of 2005, this opportunity grants tax deductions to newly constructed or retrofitted commercial buildings that meet energy efficiency thresholds in their HVAC, lighting, or building envelope systems. While any new energy efficiency upgrades need to be completed by December 31st, 2013 to qualify, the good news is that §179D is not going away for past projects. Any unclaimed tax incentives from energy efficiency upgrades in new or existing building projects completed between January 1st, 2006 and December 31st, 2013, may still qualify for the tax incentive and are worthy of consideration.
What does this mean for your building project and how do you access this benefit?
Given the fact that energy efficiency in building designs makes long term financial sense, it is likely that most new construction and retrofits that have been implemented in the last several years already include updated systems that probably qualify for §179D tax benefits. If renovation of lighting, HVAC, or building envelope systems included qualified energy efficiency improvements, building owners or designers may be eligible to receive up to $1.80 per sq ft. in tax deductions. HVAC systems in particular, which have seen general improvements in energy efficiency that are now standard for all equipment, are target rich systems to review for missed monies. Qualifying deductions require no amendment to previous year tax returns. In order to claim these incentives, the IRS requires that you contract a third party certifier to carry out energy modeling, site verification, and all relevant reports laid out in the §179D guidelines.
Capital Review Group is one of the leading national §179D third party certifiers with the experience to help you simplify this sometimes-complex process. Our team brings together accounting, engineering, and design professionals to make sure we capture all beneficial effects of this tax code. Be sure to look back for any and all uncaptured incentives your company may qualify. Call for more information: 877.666.5539