Section 179D of the Internal Revenue Code
- camila
- September 2, 2022
- 9:22 pm
The Energy Policy Act of 2005 (EPAct) was enacted creating immediate potential tax savings for building owners or architects and engineers based on the use of energy efficient improvements. Starting in January 2023 the Inflation Reduction Act outlines the Section 179D requirements for a maximum potential tax deduction between $2.50 and $5.00 per square foot construction.
At Microgrid Analytics, we know how to apply the tax law to make building energy equipment investments more profitable. As the first green tax firm, we help our clients achieve federal tax incentives aimed at making energy efficient investment as economically viable as possible.
The Benefits of EPAct 179D
Due to the recently-implemented Inflation Reduction Act, deductions can range from $2.50/sq ft to $5.00/sq ft.
Free Tax Benefit Assessments
Microgrid Analytics will review your project at no charge. Projects between January 1, 2006 till the Present are eligible. For new construction, we typically look for the Architectural, Mechanical, Electrical and Plumbing drawing sets in Autocad or .pdf. For retrofits we look for information on the project, like project cost, spec sheets, energy saving estimates as well as the project address and any drawings (New or Pre-Existing). After our complimentary review, we will estimate your project’s tax deduction as well as provide you with a fixed fee quote for your project.
EPAct 179D Permanently Extended
We are happy to announce that as of 12/27/20, EPAct 179D has been permanently extended to include all projects completed through present. At the present time any commercial or government building is eligible for a tax incentive of up to $1.88/sq.ft.
As soon as possible, we recommend beginning to compile information on any of your potentially eligible projects so you can include the EPAct benefit on your 2021 tax returns. This would be available for any newly constructed or renovated commercial or government buildings completed in past years. If you send us the data, we can perform our complimentary review and process in time for you to incorporate into your 2021 filing.