179D Update

The #IRS clarified guidelines for the recent amendments made to Section #179D under the 2020 Relief Act and the Inflation Reduction Act of 2022.

Section 179D allows #commercialbuilding owners, as well as #architects / #engineers that design governmental buildings to receive a tax deduction for the cost of #energyefficient upgrades. The deduction is designed to encourage businesses to invest in energy-efficient technology for the HVAC system, lighting, and building envelope improvements.

Historically, the maximum #taxdeduction for commercial buildings had been $1.80 per square foot. The recent amendments increased the maximum deduction to rise up to $5 per square foot if prevailing wage and apprenticeship requirements are met.

Buildings that increase their energy efficiency by at least 25 percent compared to a 2007 base building will be eligible for this #tax deduction, with bonuses for higher efficiency improvements. The ability for taxpayers to use a 2007 base building for new building improvements through 2026 #taxreturns will result in more buildings meeting the qualifications for the tax deduction under section 179D.

If you’re interested in claiming the energy-efficient commercial building deduction per 179D or other opportunities to reduce your #taxes, reach out to our team today for a free assessment of #taxcredits available..

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