What Lies Ahead for EPAct and the Energy Industry

With the expiration of 179D EPAct, there has been a lot of questions surrounding the extension of the deduction and the enactment of 179F. No one can be certain of the future of EPAct and it is likely that it may not become available again as we are seeing the focus on energy shifting towards other areas in the industry including energy research, bio-fuel, solar power, and wind energy savings.

In the meantime, let’s focus on what is known and what remains available to us surrounding the energy industry for 2013:

  • Renovation and new construction projects completed between January 2006 and December 2013 remain eligible and qualifying standards are surprisingly low.
  • With the push to improve energy efficiency through R&D, the research tax credit will be a valuable resource to ensure we see the same energy savings and technological success continue through 2014.
  • Utility audits and reductions help capture substantial immediate savings and retroactive cash refunds.

As your valued advisor, we encourage you to take a closer look at your tax planning for current opportunities available for 2013 and 2014. Be sure to take advantage of the current 179D incentives, evaluating any missed opportunities dating back to January 1, 2006. Also consider the potential extension and enactment of 179D & 179F during any new construction or renovations this year.

Below is a summary of the discussion and benefits surrounding the proposed extension and enactment of 179F:

179D Proposed Extension

  1. Extending to December 31, 2016
  2. Inclusion for other parties for not only government but not-for-profit and privately owned commercial properties.
  3. Other parties to include not only designers but financiers, engineers, tenants, contractors and energy service companies.
  4. Inclusion of exterior lighting.
  5. Maximum deduction increase to $3.00 per sq. ft.

179F – Retrofit Deduction on Commercial Property and Multi-Family units.

  1. Retrofits of 20-24%: $1.00
  2. Retrofits of 50%: $4.00
  3. Commercial nationally registered historic buildings increase 20%


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