It’s the day after Christmas and that means major shopping. The Black Friday sales may be long gone, but there are plenty of post-Christmas deals to be had and one other big discount for commercial building owners and tenants. We’re talking tax incentives.
The last few days of 2013 is your final chance to save big by going green. Even if you’re not building for several months, now’s the time to stock up on your project supplies to see huge rewards on your 2012 taxes. If not you’ll lose your chance at getting the Energy Efficient Commercial Building Tax Deduction.
What’s Covered on the Energy Efficient Commercial Building Tax Deduction
Interested in getting a $1.80 tax deduction per square foot? That’s the kind of savings that are up for grabs with the Energy Efficient Commercial Building Tax Deduction. It’s been in place for nearly six years and on December 31st of this year it’s going to expire.
Of course, building just to get the tax deduction doesn’t make the most financial sense. However, if you’re planning on making improvements or renovations in the near future, or you’re entertaining the idea of doing so then you’ll want to take advantage of the deduction while you can.
Here are the types of energy efficient investments that are eligible for the tax deduction:
- HVAC systems
- Interior lighting systems
- Building envelops
To gets the highest deduction possible you’ll need to make all three improvements and have a third party verify that the energy improvements meet or exceed the requirements set by the government. However, deep deductions are still available if you only fix one or two of the three.
Who’s Eligible for the Tax Deductions
Fortunately, the tax deduction was set up with some flexibility as to who can reap the rewards.
Owners – Anyone who owns a new or existing commercial building and pays for the energy efficient upgrades.
Designers – Those that design a new or existing commercial building to save energy.
Tenants – If the tenant pays for the energy efficient improvements they are eligible to receive the tax deduction.
Did you make any of the above improvements in the last six years? Good news – if you haven’t already claimed it you can still get the tax deduction if the improvements were made on or after January 1, 2006.
Here’s all the exact specifics on the Energy Efficient Commercial Building Tax Deduction as it’s written in the Internal Revenue Code. Time to get planning and start making green product purchases.
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