The Golden Age of the 179D Energy Efficient Building Deduction

Written by Richard Juneau, PE. Updated Aug 10, 2023.

The whole intent of Section 179D is to provide an incentive in the form of a tax deduction to building owners who install energy-efficient lighting, windows & doors, roofing, insulation, and Heating, Ventilation, and Air Conditioning/Hot Water (HVAC/HW) equipment in new buildings or retrofit projects. All buildings in the US are eligible for the 179D deduction, except housing units less than 4 stories above ground. The Inflation Reduction Act of 2022 (IRA) affected section 179D in several ways, and the next three years will present a golden opportunity for the owners and designers of energy-efficient commercial building property (EECBP).

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Maximizing Tax Benefits with Cost Segregation: Notes for Meeting IRS Guidance

Written by Bill Mark. Updated Aug 7, 2023.

When it comes to commercial real estate investments, one aspect that often goes unnoticed is the potential tax benefit through cost segregation. This powerful tax planning tool allows property owners to accelerate depreciation deductions, resulting in significant savings. In this blog, we will explore the concept of cost segregation, its benefits for companies, and the available guidance provided by the Internal Revenue Service (IRS). We will also delve into why the IRS requires engineers to perform cost segregation studies and its implications for accuracy and compliance.

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CTI's 5-Minute Guide to 179D

Written by Richard Juneau, PE. Updated Jul 31, 2023.

Since its creation in the Energy Policy Act of 2005, the Section 179D Energy Efficient Commercial Building deduction has provided an incentive for taxpayers to install energy-efficient commercial building property (EECBP) as part of the building envelope, lighting, and/or Heating, Ventilation and Air Conditioning/Hot Water (HVAC/HW) systems. EECBP comprises light fixtures, switches, HVAC equipment, automated controls, ducts, water heating, windows, doors, insulation, and roofing. EECBP may be installed in a new building, or it may be part of a retrofit project for an existing building. Buildings that qualify for 179D include almost all buildings in the United States except residential housing less than four stories above ground. That’s a lot of eligible buildings!

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States are Pitching Big Tax Breaks for Investors in ‘Opportunity’ Cities

Written by Corporate Tax Incentives. Updated Jul 14, 2019.

“If you build it, he will come.”

The 1989 movie Field of Dreams hit a home run at the box office and drafted this inspiring line to number 39 in the American Film Institute’s 100 Greatest Movie Quotes of All Time. For those who haven’t seen the magical, feel-good movie: a ghost of baseball past repeatedly whispers these words to Ray, a young corn farmer and baseball aficionado.

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How Real Estate Investors Get Real Savings with Cost Segregation

Written by Bill Mark. Updated Jun 18, 2019.

Have you had the pleasure of playing the real estate investment boardgame Monopoly? For anyone who’s shuffled the game's distinctive pieces across the board, “bought” and “sold” teeny houses and hotels, lost a pseudo fortune to a well-invested opponent, or scored some of that characteristically colorful money with a fortuitous Community Chest card, you know it’s a game of strategy. Your friends who scrutinized their investments and calculated every move usually won the game.

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Hey CPAs, Do Cost Segregation Studies Benefit Your Clients? You Bet.

Written by Frances Kim. Updated Jun 17, 2019.

 As a CPA, you want to provide your clients with the best service possible. Part of superior service includes saving them the most money, wherever and whenever you can. And a cost segregation study can answer that call to help discover more hidden cash. Read on to find out how.

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Don’t Fear the Audit, Partner with a Tax Consultant

Written by Charlotte Ochs. Updated Jun 8, 2019.

You are a savvy business owner. Part of your business acumen includes knowledge of potential tax credits that can benefit your bottom line. However, the words “potential for audit” linger in the back of your mind.

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Top 3 Tax Incentives for Building ‘Green’

Written by Darren Labrie, CPA. Updated May 17, 2019.

The 21st-century conservationists have firmly planted the phrase ‘going green’ into the American lexicon. It ubiquitously serves as a catch-all term for the act of swapping old processes, services, laws, materials, and products for those that carry some environmentally-friendly and energy-efficient element. Green building construction is just one of the many environment-saving efforts happening today.

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Why Should a Professional Handle Your Cost Segregation Study?

Written by Darren Labrie, CPA. Updated Apr 12, 2019.

I’m a little bit of a do-it-yourselfer (DIYer). As with many other “I got this” zealots, I’m always game for saving a few bucks and invigorating the ego with bragging rights for completing a task or home-improvement venture that most others would call upon a professional to tackle.

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It’s Not Lonely in the Lone Star State! More Businesses Call Texas ‘Home’

Written by Corporate Tax Incentives. Updated Feb 6, 2019.

On the heels of the record-setting incentive package of more than $1.5 billion in grants and tax breaks from New York state that Amazon stands to get for bringing at least 25,000 workers to a new campus in Queens, New York Gov. Andrew Cuomo was quoted as saying, “All things being equal, if we do nothing, they’re going to Texas.”

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