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.
Green Commercial Real Estate: Lower Vacancy, Higher Rent, Fewer Sick Days
The economic case for going green is mounting in commercial real estate. A recent study by the University of San Diego and CB Richard Ellis Group, Inc (CBRE) gave reason for both managers and tenants to seek out LEED certified and ENERGY STAR® labeled buildings. The study, “Do Green Buildings Make Dollars and Sense?”, reported that environmentally friendly work spaces saw increased productivity, fewer sick days, lower vacancy and higher rental rates.
Emerging Construction Trend: Net Zero Developments
2010 is expected to be a rough year for construction , and what growth there is will likely occur in energy efficient building. “Net zero” buildings, once thought too expensive, are gaining speed through emerging technologies and government subsidy. The Wall Street Journal closely examines the market forces making this kind of construction more popular. Behind the push is the fact that buildings are a major consumer of power, accounting for an estimated 40% of energy usage in the U.S. But a bigger shift toward net-zero construction faces hurdles, largely because such buildings often are more expensive to build. To reach zero energy use, for instance, a building needs to produce. Read More.
2010 Should Be Another Big Year for Going Green
Green building will no doubt continue to gain momentum in 2010, and tax credits designed to promote energy efficiency will continue to play an important role . Over at the Virginia Real Estate, Land Use and Construction Law Blog , Tim Hughes takes a look at the continuing trends as the marketplace goes green, and makes some predictions for the year ahead and beyond:
Lower Operating Costs of Green Properties Can Offset Initial Price Disparities
Commercial developers and architects are well aware of the benefits associated with green buildings. Although the initial construction costs may be slightly higher, the lower operating costs of green properties often offset any initial price disparities over time. Included in the Energy Policy Act of 2005 is a provision that can help offset some of the higher building costs by potentially allowing the property owner, and in some cases the contractor or architect, to take an immediate expense for the cost of property that would normally be recovered through depreciation over as many as 39 years. The Energy Efficient Commercial Buildings Deduction , found in Section 179D of the Internal Revenue Code , allows building owners or. Read More.