On December 3, the House passed a one year extension package of the expired tax breaks and on December 16, the Senate renewed the 55-tax incentive package retroactively back to Jan. 1, 2014.
This allows taxpayers to claim tax incentives including 179D EPAct, 45L Tax Credit, Bonus Depreciation, and the Research & Development Tax Credit for the tax year 2014. This 11th hour decision allows a short time frame for the application of these incentives. If you have 2014 projects, now is the time to act!
Enjoy the good news and begin your tax planning for any commercial & residential energy renovations, bonus depreciation opportunities, and research & development expenditures incurred over the past year. Contact Engineered Tax Services at 800-236-6519 for a complimentary evaluation to find the maximum benefit you or your clients may be eligible for.
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 the design of public buildings, the benefit can be allocated to the designer by the federal, state, or local government.
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. Section 45L is expected to save home builders $267 million in taxes for 2014 construction activity.
R&D Tax Credit
To help scope R&D, you can provide us with highlights over the last 3 years of your firm’s approximate total revenue, total number of employees, and total amount of wages paid to those employees. With this, ETS can then calculate a very accurate benefit analysis for you and your team.
50% Bonus Depreciation
This special “bonus depreciation” allowance is available to all businesses and applies to most types of tangible personal property and computer software acquired and placed in service in 2014. It allows taxpayers to deduct 50 percent of the cost of qualifying property in addition to the regular depreciation allowance that is normally available.