Claim up to $5/SQFT in Tax Credits with the Enhanced 179D Deduction
Are you capitalizing on the latest tax incentives? The 179D Deduction, also known as the Energy-Efficient Commercial Buildings 179D Tax Deduction, has recently undergone significant enhancements, now offering the opportunity to claim up to $5 per square foot for eligible designs. Initially introduced in 2005 as part of the Energy Policy Act, this deduction encourages energy efficiency in commercial buildings, targeting HVAC systems, interior lighting, and building envelopes. While commercial building owners who are taxpayers can benefit from accelerated depreciation, many large structures owned by non-tax-paying entities have been unable to directly enjoy these financial advantages.
However, Congress has extended the reach of 179D, allowing government entities to allocate their deduction to the taxpaying designers responsible for energy-efficient components, including architects, engineers, and design-build contractors. The Inflation Reduction Act further expands the program, potentially providing deductions of up to $5.00 per square foot.
Starting in 2023, design work for tax-exempt entities becomes eligible, unlocking the doors for various building types that were previously ineligible. These tax-exempt entities encompass a wide range, including charitable organizations, churches, private schools, foundations, political organizations, non-profits, Native American tribal governments, and Alaska Native corporations.
Investors in ground-up construction or building improvements can potentially claim 179D deductions for energy-efficient enhancements in three categories: building envelopes, HVAC systems, and lighting. Don't miss out on these substantial tax savings—utilize the expertise of LS Carlson Law to navigate the intricacies of the 179D Tax Deduction and maximize your benefits.
Below is a list of who can qualify:
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