Tax News & Views Energy Incentives Roundup

January 4, 2021

Section 179D Energy Efficiency Deduction Made Permanent – Joe Sawatske, Eide Bailly. “A recently enacted spending package made permanent the Section 179D deduction (179D) that was scheduled to expire at the end of 2020.”

“179D is a section of the tax code that provides a deduction of up to $1.80 per square foot for energy efficient commercial building property (EECBP). EECBP qualified for the deduction includes interior lighting, the building envelope and mechanical systems.

The deduction is available to those who have built and renovated their property since 2006, as well as those who have designed/built government-owned buildings such as architects, engineers and contractors, in an open tax year.”

The Max 179D deduction is $1.80 per square foot of qualifying property. Do not let these go to waste contact Eide Bailly's Fixed Assets team today to discuss what you could qualify for.

Energy-Efficient Contractors Get A Benefit with the Extension of 45L – Joe Sawatske, Eide Bailly. “Home builders and multi-family property owners should be very happy with the recently enacted spending package. The Section 45L New Energy Efficient Home Credit (45L), which had previously been scheduled to expire at the end of 2020, is a part of that package and is now available through December 31, 2021.”

Contact Eide Bailly's Fixed Assets Team for help with 45L and all property related deductions and credits.


The Five New Year’s Resolutions Every Tax Pro Should Make – Tony Nitti, Forbes. “If there were ever a year that we need to set some goals and stick to them, this is the one. But these aren’t resolutions like we’ve seen in the past, like “get a Masters in tax” or “write an article” or “join Twitter;” no, these are resolutions designed to preserve our very sanity and prevent a mass exodus from the industry unlike anything we’ve seen before.”

It’s Time to Start Your 2021 Mileage Log – Russ Fox, Taxable Talk. “Monday will be the first business day of the new year for many. You may have resolved to keep good records this year (at least, we hope you have). Start with keeping an accurate, contemporaneous written mileage log (or use a smart phone app–with periodic sending of the information to yourself to prove that the log is contemporaneous).”

4 tax moves to make in January 2021 – Kay Bell, Don’t Mess With Taxes. “Here are a few tax things to think about and take care of, after, of course, you're fully recovered from last night's fireworks and toasts.”


Tax Prospects Under A Biden Administration – Milton Ezrati, Forbes. “Biden, like every other candidate, made a lot of promises during the campaign, including what he would do about taxes. Now his transition team has laid out plans. They do not quite follow the promises, but they are in the same spirit.  His team wants to raise taxes on businesses and on the wealthy and give marginal additional breaks to lower-income Americans.”

User Fee of $67 Proposed by IRS to Obtain Estate Tax Closing Letter – Ed Zollars, Current Federal Tax Developments. “The IRS has proposed regulations to begin charging a user fee of $67 for an estate tax closing letter.”

The IRS explains its justification for taking this action as follows:

“In view of the resource constraints and purpose of issuing estate tax closing letters as a convenience to authorized persons, the IRS has identified the provision of estate tax closing letters as an appropriate service for which to establish a user fee to recover the costs that the government incurs in providing such letters. Accordingly, the Treasury Department and the IRS propose establishing a user fee for estate tax closing letter requests (see parts E and F for explanation of the authority to establish the user fee). As currently determined, the user fee is $67, as detailed in part H.”


A Look Ahead: Complexities Plague COVID-Related Loss Carrybacks – Emily Foster, Tax Notes. “Following an unprecedented tax return filing season, businesses face heightened challenges in 2021, including taking positions on pandemic-related losses and determining how best to monetize the tax benefits.”

Congress Passes Additional Legislation Regarding the Provider Relief Fund – Eide Bailly. “On December 27, 2020, President Trump signed the “Consolidated Appropriations Act, 2021” which allocates additional funds to healthcare providers and provides some changes and clarifications to existing Provider Relief Fund guidance.”

Final regs. issued on foreign partnership interests – Sally P. Schreiber, J.D., “The IRS finalized regulations (T.D. 9926) on the operation of Sec. 1446(f), which requires withholding on the transfer of a partnership interest described in Sec. 864(c)(8) (gain or loss of foreign persons from the sale or exchange of certain partnership interests). Sec. 1446(f) was added to the Code by the law known as the Tax Cuts and Jobs Act, P.L. 115-97.”


Top 100 Must-Follow Tax Twitter Accounts For 2021 – Kelly Phillips Erb, Forbes.

Great to see Eide Bailly’s Joe Kristan (@Joebwan) make the list again!

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