179D Energy-Efficient Commercial Buildings Deduction for Not-for-Profits
April 8, 2024
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Section 179D Energy-Efficient Commercial Buildings Deduction (section 179D) is an energy tax deduction created to incentivize the adoption of clean solutions in commercial buildings. Originally intended for the commercial industry, not-for-profit organizations are now able to take advantage of this notable tax deduction if they invest in energy-efficient improvements.
Since not-for-profits are tax-exempt, they can allocate the energy tax incentive to a taxpaying entity working on the structure renovations. Before applying for the Section 179D tax credit, it’s imperative to understand the solutions that make the most sense for your building and the potential deduction allocations you may be eligible to receive.
Host Amy Dosik, Not-For-Profit Tax Practice Leader at Cherry Bekaert, is joined by special guests Martin Karamon, Tax Credits and Incentives Advisory Leader, Ed Vettel, Tax Credits and Incentives Senior Associate, and Andre Kohn, Energy Tax Credits and Incentives Senior Associate. Together they discuss the Section 179D energy efficient commercial building deduction and how not-for-profits and schools can benefit.
As part of Cherry Bekaert’s Not-For-Profit podcast series, and the second episode in the energy tax credits and incentives mini-series, this episode covers:
- Section 179D background
- Determining eligibility for Section 179D
- Section 179D benefits
- Enhanced deduction requirements
- Maximizing Section 179D opportunities
Cherry Bekaert’s Energy Tax Credits and Incentives team assesses the eligibility of your organization to receive business energy tax credits and incentives, so you can receive the maximum monetary benefit allotted. If your organization makes investments in clean energy advancements, then you may benefit from energy efficiency federal, state and local energy tax credits and incentives. If you have any questions specific to your needs, Cherry Bekaert’s Not-For-Profit group is available to discuss your situation with you.
Related Resources:
- Podcast: Direct Pay for Not-for-Profits
- Factors to Consider When Seeking Cost Segregation and Section 179D Study Service Providers
- A Comprehensive Overview of Energy Tax Credits Under the Inflation Reduction Act of 2022