Common Questions About The Section 179D Tax Deduction

by | Jun 12, 2014 | Financial Services

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Although the Energy Policy Act has been in place since 2005 there are many questions that may be preventing commercial building owners, contractors and developers from fully understanding the benefit of the program. Many commercial building owners simply aren’t sure if they could even qualify for a Section 179D tax deduction based on information that they may have heard or read.

The best way to determine if you quality for a Section 179D tax deduction is to contact a firm that specializes in consultations and certification on Section 179D tax deduction options. It is important to work with a firm that is dedicated to this particular area of expertise and knowledge to ensure that you are getting the most accurate and up-to-date information, analysis and options.

Is LEED Certification Necessary?

The first thing that most commercial property owners assume is that to qualify for Section 179D tax deduction certification you also have to be LEED certified. In fact, the two are not the same and you do not need to be LEED certified to qualify for the maximum amount for your Section 179D tax deduction.

Generally buildings that have been constructed since 2001 will qualify either in part of fully in one or more of the three subsystems for a deduction. Keep in mind that not all subsystems offer the partial deduction so working with a specialized company will help clarify this issue.

Do I Have To Pay To See If My Building Is Eligible For A Section 179D Tax Deduction?

A top firm providing Section 179D tax deduction consultant will have the experience and expertise to complete a feasibility study on your building as a first step in the process. This may be offered free of charge and at no obligation to proceed through to a full analysis and certification after discussion of the results.

What Is The Cost To Have A Study Completed?

To obtain a Section 179D tax deduction there are specific steps and actions required by the IRS. These include generation of building models on specific software, on-site inspection and the actual preparation of the certifications.

As buildings vary in size the cost to have a study done to obtain a Section 179D tax deduction should be determined by the size of the building. At your initial meeting with the company this can be addressed and a cost provided to you to assist in your evaluation of the benefits.

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