Energy Tax Incentives Update: 179D EPAct & 45L Credit

Protecting Americans from Tax Hikes Act of 2015

Among the 50+ tax provisions is a 2-year extension of both 179D tax deduction for commercial buildings and 45L tax credit for residential properties. These tax incentives will reduce tax liability for property owners and architects while incentivizing investments in energy efficient technologies.

Energy Tax Incentives Overview:

  • The 179D tax deduction has been extended for 2 years from December 31, 2014 through December 31, 2016. The qualifying standards are increased from ASHRAE 2001 to ASHRAE 2007 for properties placed in service after December 31, 2015. Private owners and CPAs are eligible for up to $1.80/sq. ft. for the installation of energy-saving lighting, HVAC, and building envelopment systems in new or existing commercial buildings. For the design of public buildings, the benefit can be allocated to the designer by the federal, state, or local government.
  • The 45L Energy Efficient Tax Credit for energy efficient homes and multi-family properties has also been extended for 2 years through December 31, 2016 and provides developers a $2,000 tax credit per unit for exceeding energy standards by 50%.

With the extenders package signed into law, it is surely a relief for many as we wrap up the holidays and close out the year on a high note. The tax extenders package will ensure valuable dollars remain in taxpayer’s pockets while stimulating economic growth. Take advantage of these tax saving strategies by reviewing not only your 2015 projects but also any opportunities available retroactively to 2006.

Other key tax extenders include: Research & Development Tax Credit, Bonus Depreciation, Section §179 Expensing, New Market Tax Credits, and 15 Year Recovery Period for Qualified Leaseholds, Restaurant, and Retail Property.

Contact us to learn more

Engineered Tax Services (ETS) is a professionally licensed engineering firm with extensive experience in engineering-based specialty tax services yielding substantial tax incentives for companies of all sizes. ETS provides a full range of energy related incentives and analysis, including 179D EPAct, 45L, utility rebates and refunds, energy audits, modeling and LEED certification. Since the inception of the Energy Policy Act of 2005, ETS has performed over 10,000 179D EPAct and 45L reports to secure substantial benefits for property owners and public project developers. Unfortunately, these types of incentives are often left on the table for eligible taxpayers.

ETS specialize in additional niche solutions including Cost Segregation, Tangible Property Repair Regulation Studies, Research and Development Tax Credits, Reserve Studies, Disposition Studies, Insurance Replacement Appraisals, Brownfield, and Historic Tax Credits, Renewable Energy Credits, Facility Condition Assessments, DOE Energy Star Certification, Utility Audits, and other Federal, State, and Local Utility Incentives.

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