EPACT Section 179D extended through 2020. It previously expired at the end of 2017 and not renewed for tax years 2018 or 2019 until now. The current extension is retroactive for 2018 and 2019 (and also includes property placed-in-service in 2020).
New construction and large energy efficient capital improvements projects can qualify. The maximum deduction of $1.80/sf requires a 50% energy savings target when compared against the ASHRAE 90.1-2007 standard.
To further discuss this opportunity or to request a no-cost, no-obligation EPAct 179D Estimated please contact us.
CLICK HERE for 179D Certification Results.
The EPACT 179D energy efficient building deduction has been in effect since January 2006. It is available to owners of new or existing buildings who install energy efficient Lighting, HVAC and/or improve the energy efficiency of the building envelope. Tenants may qualify for the deduction if they make the construction expenditures.
The maximum deduction is $1.80 per square foot. Each of the three energy efficient systems, Lighting, HVAC, and Building Envelope can qualify for $0.60 per square foot each for a total of $1.80 per square foot.
In order to qualify:
- Lighting – For a 25% energy reduction*, save $0.60 per square foot
- Partial credit of $0.30 to $0.60 can be attained with a 25% – 40% reduction* in lighting power density
- HVAC – For a 25% energy reduction*, save $0.60 per square foot
- Building Envelope – For a 10% energy reduction*, save $0.60 per square foot
* Energy efficiency is compared to a reference building that meets the minimum of ASHRAE Standard 90.1-2007 for building placed into service after January 1, 2016.
Government Owned Buildings:
Designers of improvements to government owned buildings are eligible to claim the 179D Tax Deduction for the design of either newly constructed or retrofitted buildingsbetween 12/31/05 and 12/31/2020.
Further information is available through ENERGY.GOV