IRS changes requirements for the 179D Energy Efficient Commercial Building Deduction, makes it easier for buildings to qualify.

February, 2012

Source: Notice 2012-22, 2012-11 IRB

The Energy Efficient Commercial Building Deduction gives an additional tax deduction of up to $1.80 per square foot if the lighting, HVAC, and/or building envelope exceed certain percentage improvements over set baselines. For HVAC systems, prior tax law required a 20% improvement. With the new law, the improvement is 15%. In effect, this makes more buildings capable of qualifying.

Case Study: 179D Energy Efficient Commercial Building Deduction, often referred to as EPAct, saves designer of Federal Courthouse over $200,000 in taxes.

September, 2011

Do you own, design or work with energy efficient buildings? Click here to learn more about these incentives or try our benefit calculator to learn what these incentives are worth. Want to know more, please contact us. We're glad to help.

President's 2012 budget proposal includes replacing the current 179D Energy Efficient Commercial Building Deduction with a more generous tax credit that will encourage building owners to retrofit their properties.

February, 2011

Source: The White House, Office of Management and Budget

Details to come as they are released.

New tax law allows building owners to take the 179D Energy Efficient Commercial Building Deduction without amending returns, can take Deduction in closed tax years. This rule also applies to designers of publicly owned buildings.

January, 2011

Source: Revenue Procedure 2011-14

Prior to this law, taxpayers had to amend their returns to claim the 179D Deduction for construction projects completed in years prior to the current tax year. Now, taxpayers can avoid amending by making an accounting change and IRS Form 3115. This new law also means that taxpayers may benefit from projects completed in closed tax years, which is 2006 for most taxpayers.

The Tax Relief Act of 2010 allows 100 percent bonus depreciation through 2011 and 50 percent bonus depreciation for 2012

December, 2010

Source: Tax Relief Act of 2010

The Tax Relief Act of 2010 boosts 50-percent bonus depreciation to 100-percent for qualified investments made after September 8, 2010 and before January 1, 2012. The 2010 Tax Relief Act also makes 50-percent bonus depreciation available for qualified property placed in service after
December 31, 2011 and before January 1, 2013. There may never be a better time to review fixed assets and depreciation policies to take advantage of this new Act. Please contact us to learn more.

IRS issues Capitalization versus Repairs Audit Technique Guide

November, 2010

Source: IRS Capitalization v Repairs Audit Technique Guide

As part of our Fixed Asset Review, we scour the fixed asset register for items that may be immediately deductible. Unlike a cost segregation study, whereby the rules have been better explained in prior Audit Technique Guides, a Capital to Expense project previously required interpretation of numerous and often conflicting court cases as guidance. Since this new Guide reduces ambiguity, our Fixed Asset Review projects will more valuable and better defensible.

Technology - Reasons to be Green: How energy-efficiency can reap extra savings.

Before the improvements at the Fomo Products Inc. headquarters, if you crawled above the drop ceiling, you could see daylight through cracks between the roof and walls.