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Are You Making the Most of Your 179D Tax Deduction?

Are you missing out on a tax deduction? If you have recently started a new construction or renovation of a commercial property, you might be missing out on a big-money opportunity. The 179D energy-efficient tax deduction is a tax incentive that is available for newly constructed or renovated commercial buildings. Our experts at National Tax Group can help you determine how to make the most of the 179D tax deduction. 

179D Tax Deduction

The 179D tax incentive is a great tool for getting businesses to be more environmentally friendly while also receiving a tax deduction for their environmental efforts. For qualifying businesses, this tax offers tax incentives to newly constructed or renovated buildings that have installed energy-saving elements. It also provides tax-saving benefits for commercial building owners as well as architectural and design firms that have worked on government projects. The 179D energy-efficient tax deduction was originally passed and popularized under the 2005 energy policy. It allows for a tax deduction of up to $1.80 per square foot for both new and existing buildings. However, since its inception in 2005, more stringent standards have been set forth for qualifying. The specifics of qualifying for this tax credit would be best discussed with a tax professional, however, there are a few qualifying elements that may help you get started. If you have recently included new hot water systems, HVAC systems, interior lighting systems, or insulation in ceilings, walls, floors, and roofs on new construction or renovation, these may help qualify your business for the 179D tax deduction. 

ASHRAE Standards 

You must also be up-to-date on the ASHRAE standards in order to determine your eligibility for the 179D tax deduction. While it can be difficult to know the ins and outs of the ASHRAE standards without the help of a tax professional, we wanted to provide a basic understanding. 

ASHRAE, also known as the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, is a U.S. organization working toward the use of sustainable technology in building systems and energy equipment used within the HVAC Industry. The ASHRAE standards are a set of minimum requirements for the energy-efficient design of most buildings. The U.S. has these in place as a key basis for commercial building energy codes and standards. The ASHRAE standards help HVAC and refrigeration professionals stay up-to-date when installing and designing hardware.

How do these standards affect eligibility for your business receiving the 179D tax Incentive? Well, these standards are part of the qualifying items you must have in order to receive this deduction. Our experts at National Tax group stay up-to-date with the newest and most stringent of these standards so that our clients can get the most money back when building or renovating. 

If you want to learn more about the 179D Tax deduction and how your business may qualify, please contact us at the National Tax Group, so you can feel confident you’re receiving the maximum tax benefits possible. Give us a call at (561) 257-3436 and talk to one of our specialists to find out more.