Basic Information About Your 179D Tax Deduction and Your Company

by | Feb 26, 2013 | Financial Tips

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If you are a commercial property owner and you have heard of the 179D Tax Deduction benefits program that was established in 2005 as part of the Energy Policy Act; you may have a few questions about the process of qualifying for these benefits. When the Energy Policy Act was first put in place it was established to help many people, including business owners to get a tax deduction as a business owner or developer in exchange for reducing their interior lighting and energy costs. According to the act, commercial property owners can enjoy a 179D Tax Deduction of up to $1.80 per square foot.

While this 179D Tax Deduction is undeniably important for many commercial property owners, there are a number of rules, regulations and limitations that govern these deductions and who qualifies for how much savings. Having a basic understanding of the 179D Tax Deduction requirements and rules can help more commercial property owners decide if they will qualify for this type of deduction or not.

First, you will want to keep in mind that commercial property owners can not get more than $1.80 per square foot for their deduction. Also, in order to get the deduction you must first have an energy analysis performed to justify your savings and it must be done by a professional qualified engineer or contractor. These 179D Tax Deductions only apply to certain types of buildings as well. Most standard commercial buildings will qualify while apartments need to have four or more stories of the property for lease in order to qualify. Commercial renovation properties and government own buildings also quality for these deductions as well.

If you think that you may qualify for a 179D Tax Deduction and you have put in equipment like HVAC systems or lighting that makes your property more energy efficient you will want to make sure that you contact the right people to get started. Since according to law you will need to have an energy analysis done first, you will want to contact a professional engineering firm that specializes in doing 179D Tax Deductions. With these firms you will find that you can often quickly and easily make it through the inspection process and if you qualify get all of the documentation that you need to submit to the IRS to get the type of deductions you are looking for. Getting started is easy once you find the right engineer and you will likely find that the decision to turn to one of these companies can leave you with a great deal of savings and tax benefits.

Visit Walker Reid today online at to find out more about the 179D Tax Deduction process and how to get started with the inspection that you need for your deduction. With their help you can get the information that you need and insight on how to get started with their services.

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