Valuable energy tax deductions are permitted by the I.R.S. The taxpayer meeting certain commercial building energy efficient design requirements is eligible to take an immediate expense for the cost of their commercial property. The same expense deductions might otherwise be recovered through a lengthy depreciation period lasting as long as 39 years.

Qualification is not limited to commercial business owners. Architects and engineers who provide design services for municipal and not-for-profit building structures are encouraged to inquire to determine if they can receive benefit from these valuable deductions.

The Energy Policy Act of 2005 gives certain commercial property owners who install specified energy efficient systems the ability to receive an immediate deduction for related expenses. Commercial buildings constructed or substantially renovated beginning January 1, 2006 are candidates to receive the 179D deduction. Included in consideration for qualification are these types of buildings:

  • commercial buildings of any size, and/or
  • an apartment buildings which are for lease and are four stories or more, and/or
  • commercial buildings which have undergone energy renovations

Properties certified in the 60,000-120,000 square foot range can potentially generate benefits of $100,000 to $200,000 per building.