As the September and October tax season approaches, claiming the 179D Energy Efficiency Tax Incentive for commercial buildings and 45L Residential Energy Efficient Tax Credit is evermore important. The future of these energy incentives remains uncertain as congress determines what will be included in the new tax reform. These energy incentives expired at the end of 2016 so unless extended, this may be the last year to qualify. If you performed energy efficient upgrades to your residential or commercial buildings, find out if you qualify before it's too late!
179D EPAct
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 buildings. For the design of public buildings, the benefit can be allocated to the designer by the federal, state, or local government.
Under the current tax reform, this incentive may be expanded with the addition of 179F for enhanced benefits. Review the proposed changes here.
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45L Residential Energy Efficient Tax Credit
Section 45L Tax Credit for Energy Efficient Homes and Multi-Family Properties. Provides builders a $2,000 tax credit for exceeding energy standards by 50%. The base energy code is the 2006 International Energy Conservation Code plus supplements.
If included in the tax reform bill, the 45L benefit may be reduced to a $1,500 credit per unit with additional benefits, depending on the level of energy efficiency. Read more on the proposed 45L changes.
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