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Only a limited number of contractors, engineers and architects are fully aware of the fact that they are eligible for the 179 D tax benefit, which could put a significant amount of money in their pockets and allow them to grow their business. These categories of professionals can profit from up to $1.80/square (the maximum deduction) by simply designing or remodeling energy-efficient buildings. Contrary to popular belief, developers don’t have to plant grass on the roof of their buildings, install thousands of solar panels or implement a windmill to power the electrical systems, in order to explore these monetary advantages.
As a matter of fact, any expert in this field will tell you that most new constructions and recently remodeled ones will automatically qualify for this federal tax benefit (entirely or partially) by simply meeting current building code requirements, which are much more stricter these days.
Find Out How Your Construction Can Qualify for This Tax Benefit
There are various ways in which you can make a building qualify for the 179D tax benefit. The key is to implement or remodel 3 subsystems that could become eligible for this much-needed incentive: hot water systems or HVAC systems, interior lighting systems and the building envelope, comprising all the elements designed to separate the indoor spaces from the outdoor area. According to most experts, the 179D tax deduction makes more sense from a financial standpoint for buildings with a total surface exceeding 50,000 square feet.
Understanding the 179D Tax Deduction
Here’s what you should know about this tax deduction for energy-efficient commercial buildings:
- The start date was 1/1/2006 and the expiration date was 12/31/2013
- Equipment requirements are not clearly specified, but in order to become eligible for this tax benefit buildings should be able to meet certain energy-reduction targets due to their innovative design or series of improvements reflected by the building envelope, hot water system or heating, ventilation and air conditioning
- The amount of money that you can expect to receive ranges from $0.30 to $1.80/square foot based on the level of energy reduction that is achieved and the technology utilized in the process
- Deductions linked to government constructions go to the designers of the buildings
- The maximum amount of money that you can receive is $1.80 per square foot
As you may already know, the EPAct expired in the last day of the last month of 2013. But this doesn’t mean that all is lost. Contractors, engineers and architects can still go back 3 years and claim their benefits. This means that these categories of experts should inventory the projects that they’ve worked on during the last three years and get the tax benefits that they are entitled to. The IRS requires designers to get an allocating letter from the government; on top of that, engineers, designers and contractors should also count on on-site visits of a licensed engineer who could certify the energy savings that represent the end result of the construction/remodeling work.
To find out more about benefit how you can profit from the 179D tax deduction and various other rebates and financial advantages, just give us a call. At Claris Energy, we work around the clock to offer you unlimited access to info related to green energy that could make your business more eco-friendly and profitable at the same time.
Steve Nanos
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