Commercial Building Owners
Commercial building owners that take steps to reduce their building’s energy consumption and focus on green initiatives, can reward their efforts by applying for the 179D Energy Efficient Tax Deduction. Through the Green Act 2019 deduction, qualifying companies can claim as much as $1.80 per square foot for each building.
Qualifying energy-saving systems include
- Hot water systems
- Building envelope systems
- Heating, ventilation, and air conditioning (HVAC)
- Interior lighting systems
- Insulation in ceilings, walls, floors, and roofs
- Lighting sensors and controls
The amount of money a business owner is able to deduct from their taxes depends on the size of the building that is being examined.
Construction
Building owners who incorporate energy-saving elements into their construction and operational plans are able to immediately apply for the 179D deduction, even before they break ground on the new building
Renovations
179D can be claimed by building owners who have made renovations to reduce the energy consumption of recently acquired or already owned buildings. Qualifying renovations can include updating hot water, heating, or lighting systems.
Contact us for a free assessment.
Commercial Building Owners
Commercial building owners that take steps to reduce their building’s energy consumption and focus on green initiatives, can reward their efforts by applying for the 179D Energy Efficient Tax Deduction. Through the Green Act 2019 deduction, qualifying companies can claim as much as $1.80 per square foot for each building.
Qualifying energy-saving systems include
- Hot water systems
- Building envelope systems
- Heating, ventilation, and air conditioning (HVAC)
- Interior lighting systems
- Insulation in ceilings, walls, floors, and roofs
- Lighting sensors and controls
The amount of money a business owner is able to deduct from their taxes depends on the size of the building that is being examined.
Construction
Building owners who incorporate energy-saving elements into their construction and operational plans are able to immediately apply for the 179D deduction, even before they break ground on the new building
Renovations
179D can be claimed by building owners who have made renovations to reduce the energy consumption of recently acquired or already owned buildings. Qualifying renovations can include updating hot water, heating, or lighting systems.
Contact us for a free assessment.
Commercial Property Owners
Commercial property owners, inspectors, and investors are encouraged to have cost segregation studies performed on their buildings in order to improve their federal tax credit savings, and increase their cash flow. The study is beneficial for almost any commercial building that has been constructed, acquired, or renovated and is done to identify building systems and components that qualify for accelerated deductions.
Commercial building properties are typically depreciated over 39 years. However, certain building components and systems including electrical installations, plumbing, and mechanical systems may qualify for a shorter depreciation period of 5, 7, or 15 years.
The Tax Cuts and Jobs Act of 2017 has had a positive effect on cross segregation studies, and our team of tax experts are now able to immediately write-off property depreciated under 20 years.
Qualifying for cost segregation
- The building itself, or improvements to a building were placed into service after 1987
- The construction or improvements have a cost basis of $150,000 or more
- The building must be kept within the owner’s possession for at least 3 more years
All commercial building owners are encouraged to have a cost segregation study done on their property.
Contact us for a free assessment.
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