179D Tax Deduction for Energy Efficient Buildings extended through December 31, 2013

179D Tax Deductions for projects completed in 2013

In government-owned buildings, the government may allocate this deduction to the person or persons primarily responsible for designing the qualified improvements. The deduction may be taken in the year the energy-efficient improvements are placed in service. The Emergency Economic Stabilization Act of 2008 (P.L. 110-343) extended this deduction through December 31, 2013.

Partial deductions: When calculating a partial deduction for heating, cooling, ventilation, and hot water systems, a taxpayer may apply section 2.04 of Notice 2006-52.

The applicable energy savings percentages permitted under this notice are:

  • 25 percent for the interior lighting system
  • 15 percent for the heating, cooling, ventilation, and hot water systems
  • 10 percent for the building envelope

More info: The Energy Policy Act of 2005 (P.L. 109-58) authorized the Energy-Efficient Commercial Buildings Tax Deduction, 179D, also called EPACT, was designed to reward building and designing with higher energy efficiency standards by offering financial incentives.

This entry was posted on Friday, November 15th, 2013 at 16:44 and is filed under News & Events.