Energize Your Tax Benefits
Time is running out to maximize your tax deductions through energy-related building improvements. As CB&H’s Bill Becker writes in the latest issue of Commercial Investment Real Estate magazine, many incentives are currently scheduled to sunset in 2013. The most common provision in EPAct is the Energy Efficient Commercial Buildings Deduction. This deduction, which is also referred to as the Section 179D deduction, allows a property owner to claim an immediate tax deduction of up to $1.80 per square foot for energy-efficient improvements to a building’s envelope or its lighting, hot water, and heating, ventilation, and air conditioning systems. A building qualifies for the full deduction if. Read More.
Energy Savings Percentages Under Section 179D Revised Through 2013
On February 24, 2012, the IRS issued Notice 2012-22 , which outlines changes to the energy savings percentages that taxpayers can use when qualifying energy-efficient commercial buildings for the Section 179D deduction. Effective for property placed in service from the date of the notice through December 31, 2013, the following percentages apply: 25% for interior lighting systems 15% for heating, cooling, ventilation and hot water systems 10% for the building envelope What is Section 179D? Intended to offset some of the costs of qualifying energy-efficient improvements to commercial buildings, the Section 179D deduction allows taxpayers to take an immediate expense for the. Read More.
Deadline Looms for Some Tax Benefits Under the Small Business Jobs Act
Real estate and construction companies need to take note that some key provisions of the Small Business Jobs Act of 2010 (the Act) will expire by the end of the month. The Act expanded two income tax expensing provisions as an incentive to encourage businesses to purchase certain types of property. In order to take full advantage of these provisions for 2010 calendar tax years, qualified businesses will need to act quickly, placing property in service as soon as December 31, 2010. Bonus Depreciation Retroactive to January 1, 2010, the Act extended the 50-percent first-year bonus depreciation that previously expired at the end of 2009, giving. Read More.
HIRE Act Contains Several New Tax Incentives to Promote Job Creation
Last week, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act (HR 2847) . The law includes several major tax provisions designed to promote job creation as the nation’s economy continues to recover from recession. The Act introduces the “ Hire Now Tax Cut ” to qualified employers both in the form of payroll forgiveness for Social Security taxes paid for qualified new hires, as well as a tax credit for keeping those employees on payroll for 52 consecutive weeks. Click here to read CB&H’s recent Tax Bulletin on the HIRE Act for more information about these provisions. The Act also extends enhanced Code Sec. 179 expensing threshold levels through December 31, 2010. This extension means that the previous limits of $125,000 with a $500,000 cap will. Read More.
Understanding the Section 179D Federal Energy Tax Deduction – Answers to Your Questions
Many key tax incentives enacted over the last several years have focused on encouraging businesses to incorporate energy efficiency into their operational plans. One tax incentive in particular relates to the design and construction of energy-efficient commercial building property , and remains underutilized because many taxpayers do not know it exists. Intended to offset some of the costs of qualifying energy-efficient improvements to commercial buildings, the deduction allows taxpayers to take an immediate expense for the cost of property that would normally be recovered through depreciation over as many as 39 years. To help you better understand the Section 179D federal energy tax deduction and how it may. Read More.
Energy-Efficient Government Building Designers May Realize Substantial Tax Savings
With rising energy prices and concerns about global warming, many key tax incentives enacted over the last several years have focused on encouraging energy efficiency. One tax incentive in particular relates to the design and construction of energy-efficient buildings, and remains underutilized because so few designers of commercial properties owned by federal, state or local governments know it exists. Section 179D of the Internal Revenue Code , created as part of the Energy Policy Act of 2005, provides a maximum deduction of $1.80 per square foot to the owners of energy-efficient commercial buildings for the year in which the qualifying property is placed in service. Since federal,. Read More.