After weeks of speculation, the details of the new energy efficiency proposal have been released. This proposal has been a long time coming, and it is believed to have a prospective pass date of December 20, 2019. Not only does this bill seek to renew multiple green energy efficiency tax codes, but it is also giving 179D and 45L a facelift.
What is now being called the Green Act of 2019 calls for the 179D and 45L incentives to be extended from 2017 to 2024. They are also requesting that the energy efficiency level to qualify for these tax incentives be lowered from 50% down to 30%, which would give many more businesses and home builders the opportunity to take advantage of these going green activities. Furthermore, it has been requested that the current 179D incentive of $1.80 per square foot be increased to a full $3.00 per square foot, which almost doubles its value and appeal. The 45L credit has also been upgraded from $2,000 per unit to $2,500 per unit.
This is a good day for those hoping to take advantage of these going green initiatives in their 2020 projects. More information on its passing date should be released soon, but National Tax Group is hopeful of the outcome, and we are excited to see this come to fruition. Get your tax information ready because once this has been resolved, National Tax Group is here to help you claim all of the incentives your business or unit qualifies for.