Did you know you could be saving hundreds of thousands of dollars on commercial green building projects through a federal tax deduction?
The Energy Efficient commercial buildings deduction was part of the tax deal the President signed into law at the end of 2019. The tax deal included new regulations for section 179D of the Energy Policy Act. The Energy Policy Act was created in 2005.
A building can qualify for up to $1.80 per square foot of updated space. The deduction is available for new or existing buildings that upgrade their interior lighting, building envelope, or heating, cooling, ventilation, or hot water systems, and will reduce total annual energy and power costs by 50% or more. Architects, contractors, engineers, and building owners can qualify for the tax deduction.
The benefit remains effective until December 31, 2020. With new extensions, your business may be eligible for benefits for projects completed as far back as 2018.
As it is the beginning of the year, you still have time to apply for the 179D tax deductions, but time is running out.
If you have questions about these tax deductions or anything related to energy efficiency buildings, please reach out to us.