Overlooked Tax Deduction for Energy Efficiency Projects
Leaving money on the table is never a good thing in business. It is however common practice for companies, landlords and others involved in Green Energy Projects. In short the owners of buildings simply are not taking advantage of the Energy Policy Act of 2005 Section 179D which allows for up to a $1.80/sf deduction for energy efficiency upgrades, including: Lighting, HVAC, and Building Envelope projects.
In an interview with Susan Evans, New England Managing Director at Engineered Tax Services it became clear that there is “money being left on the table” by project owners,tenants, and designers of public energy efficiency projects. The reason is simply a general lack of awareness that the program exists.
In short this is an “accelerated depreciation tax deduction on energy upgrade assets,” where the project can demonstrate energy efficiency on building retrofits or on new construction.. Qualifying for this tax deduction requires that certification from a Professional Engineer licensed in the same state as the project substantiate the filing.
Who qualifies for this program?
“Commercial building owners, tenants who pay for energy upgrades, designers of energy upgrades or new construction on public buildings.”
If a business hasn’t yet taken advantage of the program, there is still time. Businesses can apply for projects completed as far back a 1/1/2006.
What does this mean for your business?
1) If your business has completed an energy efficincy project and not filed for this deduction you may want to check with your tax advisor to see if you qualify.
2) If you are an energy related contactor you may point out the existence of this program to past and potential clients.
June 28, 2011 by Don Madden