Can My Building Qualify For EPACT 179D Tax Deductions?

It is amazing how many commercial buildings that are in operation today that have not been considered as a good option to claim the EPACT 179D deductions that they may easily qualify for. Often this is because the building owner is not informed of the option or perhaps because the owner doesn’t believe that the building could qualify because it is not a LEED certified or “green” building.

New Buildings

Most new and newer buildings, those completed since the ASHRAE standards of 2001 were implemented for all new construction, will qualify for at least partial deductions with one or more subsystems. Remember that each of the three subsystems, the HVAC, interior lighting and building envelope are analyzed for energy efficiently within the report. Being built to the ASHRAE 2001 standards should ensure these are met.

A firm that specializes in analysis and certification for EPACT 179D tax deductions can typically complete a review of your construction plans, specs and documentation and determine if you will qualify.

Not a Green Building

Sometimes people are confused about the LEED certification and the option to obtain an EPACT 179D deduction. A building does not have to be LEED certified or considered a “green” building to get the full deduction possible in any or all subsystems.

You also do not have to have made a profit this year to make the claim, it can be used over past tax filing or carried forward to be offset against income and future profits. The company preparing your certification and reports for the IRS can work with your accountant to ensure that your tax deduction is filed correctly.

Not a Big Building

According to the IRC, Internal Revenue Code, a building of any size can qualify provided it is being used for commercial purposes. This can also include apartments that are leased by the tenants and that are a minimum of four stories. Commercial renovations in buildings after December 31, 2005 and before January 1, 2014 can also qualify for the EPACT 179D tax deduction.

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