The Section 179D Energy Efficient Commercial Building Deduction provides for a powerful tax deduction of - at minimum - $1.80 per square foot for newly constructed or recently renovated commercial buildings. The deduction is available to private commercial building owners, and eligible designers of energy efficient HVAC & Hot Water, Interior Lighting, and/or Building Envelope systems.
Because public and/or federal tax-exempt building owners do not pay federal property taxes, they are not eligible to claim the 179D tax deduction. Instead, eligible designers – including Architects, Engineers, General Contractors, and more – may secure a letter from the building owner, allocating the deduction to said designer.
In 2022, the Inflation Reduction Act (IRA) was signed into law and provides new tax incentive opportunities for architects, engineers, contractors, and commercial property owners. The IRA increased the 179D Tax Deduction for commercial buildings placed in service in 2023 and beyond to as much as $5.00 per square foot for exceeding certain energy efficiency standards.
The IRA also includes language allowing additional tax-exempt building owners to offer the allocation to energy efficient commercial building designers. Included in the expansion of eligible entities are buildings owned by non-profit organizations, tribal governments, religious organizations, and privately owned schools or universities.
This webinar will review the 179D deduction in detail prior to 2022 and what changes are in affect starting in 2023.
Learning objectives:
- Learn how architecture and engineering firms are eligible for the 179D Energy Efficient Commercial Building Tax Deduction
- Identify 179D eligible projects, and understand the process for claiming the 179D incentive
- Understand the 179D government building allocation process
- Review of the Inflation Reduction Act changes that affected the 179D deduction starting in 2023
Presenter: Brady, Bryan, CEO and Gareth Young, Senior Engineering Manger, BRAYN Consulting LLC