A trusted advisor can help you take full advantage of energy efficiency credits and deductions such as 179D and 45L. Eide Bailly has the professional engineers, energy modelers and HERS raters in-house and at the ready to help you maximize your energy credits and deductions.
Section 179D Energy Efficiency Deduction
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).
Privately Owned Buildings
Privately owned commercial buildings (industrial, office, retail, healthcare, etc.) and residential buildings at least 4-stories tall that include energy-efficient components and were placed in service as of January 1, 2006 could benefit from the Section 179D Energy Efficiency Tax Deduction. Deductions of $0.60 per square foot are available for interior lighting, building envelope or HVAC and hot water systems that meet certain energy efficiency standards, for a total deduction of up to $1.80 per square foot. The owner of the EECBP is eligible for the deduction—this is typically the building owner but could include tenants who have paid for and are depreciating the EECBP.
Government-Owned Buildings
Most government-owned buildings (both newly constructed and renovated) that are substantially complete in an open tax year can potentially qualify for the 179D deduction. The “designer” of government-owned EECBP is eligible for the deduction. A designer creates the technical specifications for installation of EECBP and could include architects, engineers, general contractors and subcontractors. However, a person that merely installs, repairs or maintains the property is not a designer. Note: projects may have more than one qualifying designer. It is advantageous to pursue this deduction as early in the process as possible. If you were the designer of the EECBP of a government-owned facility placed in service in an open tax year (typically the last three), you could benefit from the 179D deduction.
Section 45L New Energy Efficient Home Credit
Section 45L New Energy Efficient Home Credit is a tax credit for properties that meet certain energy efficiency standards. Newly constructed or substantially renovated low-rise multifamily and single-family homes that utilize energy-efficient building components, leading to energy savings of at least 50% over the 2006 International Energy Conservation Code, are eligible for the 45L credit up to $2,000.
How Do You Qualify for Energy Efficiency Tax Credits and Deductions?
The first step in understanding the energy efficient credits and deductions is knowing if you qualify. Here are some key indicators that you may be eligible for 45L or 179D:
Choosing the Right Firm for Your Energy Efficiency Credits and Deductions
Tax credits and deductions exist to help you save money and operate efficiently. But often the first step is understanding if you even qualify. Working alongside a trained professional who specializes in tax credits and deductions can help you make sense of your particular situation and maximize the benefit.
Eide Bailly’s nationally recognized industry specialists have expertise to help you maximize energy efficient incentives. They have worked with hundreds of clients, helping to achieve maximum benefit and equating to millions of dollars saved.
The following are examples of organizations that have benefited from working with Eide Bailly’s energy efficient credits and deductions team:
Our energy efficient credits and deductions team understands the ins and out of the 179D energy efficient tax deduction and the 45L energy efficient tax credit. They will help you assess your eligibility and then work with you to maximize the potential benefit of energy efficient incentives.
Take the confusion out of the energy efficiency tax credits and deductions process. Work alongside a nationally recognized CPA firm with a proven track record of helping clients utilize the 179D and 45L credits.
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I've really enjoyed working with the team at Eide Bailly. We've been treated fairly and I'm thrilled with the additional tax credits we now receive."
Eide Bailly is different from other accounting firms because they are knowledgeable and prompt! Their professionals knew about tax changes and deductions our former accountants were not aware of. We have always received honest, courteous and timely services from everyone at Eide Bailly. I cannot think of a better company to work with."
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