By any chance if you have invested in energy efficient improvements, you can contemplate benefiting from Epact 179d deductions. Just make sure that the improvements got placed in service after the 1st of January, 2006. Interestingly the only reason that you are likely to benefit from the said deductions is that the Emergency Economic Stabilization Act of 2008 made it possible for you. Just so you know this act ensured that the deductions get extended through December 31, 2013. Consequently, you can think along the lines of getting a deduction of up to $1.80/sf. Nevertheless, the deductions can be yours, but only if the improvements you invested in qualify.
Improvements which are likely to be considered
By and large, the improvements are supposed to reduce energy use. Furthermore, this reduction must be accomplished for either a building’s envelope or its interior lighting system. In fact, reduction obtained in case of HVAC can also be considered. Nevertheless, while taking a look at the improvements can help you in determining the eligibility, you may have to consider some other points to be able to ensure that you are actually an ideal candidate. These points include:
Improvements which are likely to be considered
By and large, the improvements are supposed to reduce energy use. Furthermore, this reduction must be accomplished for either a building’s envelope or its interior lighting system. In fact, reduction obtained in case of HVAC can also be considered. Nevertheless, while taking a look at the improvements can help you in determining the eligibility, you may have to consider some other points to be able to ensure that you are actually an ideal candidate. These points include:
- The first thing that you have to be keep in mind when it comes to EPAct 179d deductions is that these are not based on the amount spent, which by the way, forms the basis of most of the other deductions. In fact, as far as the former types of deductions are concerned, the affected square footage are likely to be the deciding factors.
- Secondly, as an ideal candidate, you ought to have improvements with a minimum square footage of 50,000 square feet.
- Thirdly, the good news is that there are several improvements that qualify for the deductions. These improvements can include simple lighting retrofits. On the other hand, major improvements such as the ones undertaken during full-scale construction projects can also be determinants of qualification.
- You would be surprised to know that regional as well as multiple chains, especially the ones with multiple locations are often considered to be the ideal candidates for the purpose of benefiting from EPAct 179d Deductions. So, if you fall in this category, you may get lucky.
Interestingly, the best part here is these tax breaks are also meant to be leveraged by architects and designers, if they so desire. They simply have to ensure that they are engaged in implementing energy efficient designs on government buildings. However, to be able to benefit from the deductions, they have to make sure that the designs created by them meet the specified criteria.
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